Tax Year Prior to 2020: wash sale

[tpe]

I sold some technology stocks for loss in 2019, then within 30 days I bought some technology ETFs and . Nasdaq 100 mutual funds and ETFs in Roth IRA and regular taxable accounts. Do these stocks sale loss are wash sale according to substantial  identical security? I also closed out all the stock positions in December. But I stil keep those ETFs and mutual funds.

[Anonymous_]

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@tpe wrote:

Do these stocks sale loss are wash sale according to substantial  identical security? 

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Probably, and most likely, not. The mutual funds and ETFs would have to virtually replicate (or come very close to replicating) the portfolio of technology stocks you sold. Otherwise, there is no wash sale in this transaction.

Generally, even switching from actively managed fund to an index fund is not typically considered to fall within the purview of the wash sale rule as substantially identical so the scenario presented here should not be problematic.

[Critter]

And anything that happens inside an IRA has no effect on accounts in a regular broker's account.  There is no such thing as a wash sale inside an IRA.

[NCperson]

@Critter 

what about if I sell $100,000 of stock from my regular broker's account and have a loss of $10,000.  then I immediately invest $100,000 that is sitting inside my IRA  into the exact same stock i just sold in the regular broker's account.  

Wash rule on the loss in my regular broker's account applies??????

[Critter]

Ok ... well I looked it up ... and it does affect the reg account ...  probably not the best choice not to wait 30 days ...  you will need to alert your broker so they can report the sale correctly  OR   make the adjustment yourself in the program. 

If you sell shares in your taxable account and buy substantially identical shares in your IRA within 30 days, the wash sale rule applies. It also applies if you sell shares in your taxable account and buy within 30 days financial instruments that can convert into the sold shares.

IRA Rules for Wash Sales | Finance - Zacks

https://finance.zacks.com › ira-rules-wash-sales-9068

[farmgirl71-comcast_]

Is a wash sale considered an adjustment to a stock sale?

If so, where do I find the code?

[VictorW9]

The interview questions will lead you to enter information about uncommon stock sales. Here, you will enter information about your wash sales. It says specifically "wash sales" in TurboTax. Check this link on: How to enter wash sales in TurboTax.

[HyperLunatic]

All of the wash sale example I read relate to a sale of stock at a loss, and then a buy of the same stock less than 30 days later.  I have a different scenario.  I recently sold many shares of stock at a gain (most long, some short) due to a stop loss trigger when the market declined (Feb 24th, 2020).  Several days later, when I thought the market was at the bottom, I repurchased the same stock (March 2nd, 2020).  Currently (March 12th, 2020), the stock is trading below the March 2nd price.   If I sell some or all of these shares (all short) at a loss, do I trigger a wash sale?  Is there some advantage to waiting until 30 days after either Feb 24th or March 2nd?  Since the 30 day rule is 30 days before or after, how do I think about my situation?

[NCperson]

you are fine....  the idea behind the wash sale rule is the IRS doesn't want you  to sell a stock just to reduce taxes only to buy it back again shortly thereafter.

Since you have a reported GAIN on the Feb 24 sale, the IRS is hungry to take your money on the capital  gain!  so wash sale rules do not apply.

for the shares purchased on March 2,  if you sell them at a loss, any repurchase of these same shares within 30 days of the sale will trigger the wash sale rules