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Wash Sale on Mutual fund distributions

I sold a Mutual fund (long term holding) for a over all gain. It has lots of lots (some were at gain and some where at losses) over the years but all are long term holdings.


Lets say Sale date is Dec. 17th 2020

Last distribution is on Dec 16th 2020


Average Purchase Price NAV = $25

Average Sale Price NAV = $35

Last distribution was on Dec. 16th 2020 and distribution price= $36  it triggered WASH sale on 1099.


But there is no other purchase. how to report this?

2 Replies
Level 15

Wash Sale on Mutual fund distributions

your year-end distribution was reinvested, which is a buy within the thirty-day window, triggering a wash sale.

Your triggering transaction (the reinvestment) has been adjusted.

Your wash sale goes on your tax return; you can't take that loss in 2020.


How to report it: exactly as shown.

Not applicable

Wash Sale on Mutual fund distributions

There are 2 questions.


Mutual fund overall (some lots were at loss and some were gains) was sold at Profit so should WASH sale even tick in for distribution?


I always thought, if you sold at loss (which in case some lots were sold at loss) and bought same security within 30 days before or after SALE, you have to add loss to cost basis of new investment.


But size of lot is uneven.

there are 2000 Units/shares sold

But only 50 units/shares were reinvestment. So how much of loss will be added to cost basis of new investment/distribution which was reinvested and SOLD.


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