Comments on: Loss Harvesting http://www.accumulatingmoney.com/loss-harvesting/ Because wealth is better than poverty, if only for financial reasons. Mon, 19 Jul 2010 06:32:22 +0000 hourly 1 http://wordpress.org/?v=3.0 By: Accumulating Money » My 5 most popular posts of 2006 http://www.accumulatingmoney.com/loss-harvesting/comment-page-1/#comment-128 Accumulating Money » My 5 most popular posts of 2006 Wed, 27 Dec 2006 05:44:01 +0000 http://www.accumulatingmoney.com/loss-harvesting/#comment-128 [...] 2. Loss Harvesting - For many investors, loss harvesting is the single most important area for reducing taxes now and in the future. [...] [...] 2. Loss Harvesting – For many investors, loss harvesting is the single most important area for reducing taxes now and in the future. [...]

]]> By: Ray http://www.accumulatingmoney.com/loss-harvesting/comment-page-1/#comment-35 Ray Wed, 30 Aug 2006 13:57:07 +0000 http://www.accumulatingmoney.com/loss-harvesting/#comment-35 Why not just sell the stock at a loss in your taxable accounts and then repurchase them in your tax sheltered accounts? This way there is no grey area and you are able to gain the ability to carry your losses forward, max of $3k a year. Why not just sell the stock at a loss in your taxable accounts and then repurchase them in your tax sheltered accounts? This way there is no grey area and you are able to gain the ability to carry your losses forward, max of $3k a year.

]]> By: My Money Blog http://www.accumulatingmoney.com/loss-harvesting/comment-page-1/#comment-34 My Money Blog Mon, 28 Aug 2006 13:51:17 +0000 http://www.accumulatingmoney.com/loss-harvesting/#comment-34 <strong>Carnival of Investing...</strong> Here is this week’s Carnival of Investing, bare and unadorned. I haven’t been able to commit the time needed to do what I wanted to do with this Carnival coordinating thing, so it is in the process of being transitioned to Fat Pitch Financ... Carnival of Investing…

Here is this week’s Carnival of Investing, bare and unadorned. I haven’t been able to commit the time needed to do what I wanted to do with this Carnival coordinating thing, so it is in the process of being transitioned to Fat Pitch Financ…

]]> By: Jonathan http://www.accumulatingmoney.com/loss-harvesting/comment-page-1/#comment-33 Jonathan Mon, 28 Aug 2006 04:38:19 +0000 http://www.accumulatingmoney.com/loss-harvesting/#comment-33 I would tend to agree that two S&P 500 index funds would be in danger of being "substantially identical". I mean, if anything is substantially identical without being completely identical, that would be it. I would instead opt for an index fund that tracks the top 1000 stocks or similar, with a beta is 0.99. I would tend to agree that two S&P 500 index funds would be in danger of being “substantially identical”. I mean, if anything is substantially identical without being completely identical, that would be it.

I would instead opt for an index fund that tracks the top 1000 stocks or similar, with a beta is 0.99.

]]> By: Clint http://www.accumulatingmoney.com/loss-harvesting/comment-page-1/#comment-31 Clint Sun, 27 Aug 2006 15:09:10 +0000 http://www.accumulatingmoney.com/loss-harvesting/#comment-31 ETF Guy - There's much debate, but no direct authority, on the question of whether two mutual funds keying off the same index are substantially identical for purposes of the wash sale rule. Because there is no direct authority dealing with this question, reasonable minds may disagree. It's always possible to identify differences between funds managed by different companies, such as expense ratios and tax load. Some people conclude on this basis that funds maintained by two different companies are never substantially identical. Since the IRS has never issued a concrete definition of "substantially identical," many tax planners argue that selling a Vanguard S&P 500 index fund at a loss and purchasing a Fidelity S&P 500 index fund within 31 days will not violate the wash sale rule. And until the IRS rules otherwise, they're probably right. If you prefer to stay on the safe side of the wash sale rule, you can move to a managed fund that closely tracks your index fund, a broader index fund , or wait 31 days before repurchasing. ETF Guy – There’s much debate, but no direct authority, on the question of whether two mutual funds keying off the same index are substantially identical for purposes of the wash sale rule.

Because there is no direct authority dealing with this question, reasonable minds may disagree. It’s always possible to identify differences between funds managed by different companies, such as expense ratios and tax load. Some people conclude on this basis that funds maintained by two different companies are never substantially identical.

Since the IRS has never issued a concrete definition of “substantially identical,” many tax planners argue that selling a Vanguard S&P 500 index fund at a loss and purchasing a Fidelity S&P 500 index fund within 31 days will not violate the wash sale rule. And until the IRS rules otherwise, they’re probably right.

If you prefer to stay on the safe side of the wash sale rule, you can move to a managed fund that closely tracks your index fund, a broader index fund , or wait 31 days before repurchasing.

]]> By: ETF Guy http://www.accumulatingmoney.com/loss-harvesting/comment-page-1/#comment-30 ETF Guy Sun, 27 Aug 2006 02:00:56 +0000 http://www.accumulatingmoney.com/loss-harvesting/#comment-30 I think your interpretation of the IRS wash sale guidelines is too generous. Switching from a fund in one family that tracks the S&P500 to another fund in another family that also tracks the S&P500 isn't sufficient to avoid the wash sale rule. I believe the fact they hold the same underlying shares in the same percentages makes them substantially the same. The blurb you quoted was probably written under the assumption that actively managed funds are generally different and didn't account for inde funds. I think your interpretation of the IRS wash sale guidelines is too generous. Switching from a fund in one family that tracks the S&P500 to another fund in another family that also tracks the S&P500 isn’t sufficient to avoid the wash sale rule. I believe the fact they hold the same underlying shares in the same percentages makes them substantially the same. The blurb you quoted was probably written under the assumption that actively managed funds are generally different and didn’t account for inde funds.

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