Wash Sale

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  • Jesse
    Senior Member
    • Aug 2005
    • 2064

    #1

    Wash Sale

    2002 Tax return:

    Taxpayer originally invested $30,000 between 3 different funds - Thrivent Equity Income/Capital Growth/Small Cap.

    The funds decrease in value, now worth $20,000 so taxpayer pulls $8,000 out - cash - and reinvests the other $12,000 into Thrivent Money Market Fund.

    Would the $12,000 need to be traced and subject to the Wash Sale rules?
    http://www.viagrabelgiquefr.com/
  • sea-tax
    Senior Member
    • Apr 2006
    • 971

    #2
    Originally posted by Jesse
    2002 Tax return:

    Taxpayer originally invested $30,000 between 3 different funds - Thrivent Equity Income/Capital Growth/Small Cap.

    The funds decrease in value, now worth $20,000 so taxpayer pulls $8,000 out - cash - and reinvests the other $12,000 into Thrivent Money Market Fund.

    Would the $12,000 need to be traced and subject to the Wash Sale rules?

    I will say I don't think so, based on the limited information you provided. see TTB delux 2006 page 6-10.

    I don't think that a MMFund is substantially identical security to a stock fund.
    If the client bought the same fund back again within the 30 day time period then that might be a different story.

    Comment

    • Jesse
      Senior Member
      • Aug 2005
      • 2064

      #3
      Possibly over-thinking, but, I was thinking these are mutual fund accounts through the same company therefore = substantially identical securities. However, this would not hold true as the investments for each of these "pooled" funds would not be substantially identical, correct?
      http://www.viagrabelgiquefr.com/

      Comment

      • Kram BergGold
        Senior Member
        • Jun 2006
        • 2112

        #4
        Absolutely not

        A MM fund has a constant $1 value, so in no way could this cause a wash sale.

        Comment

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