Wash sale issue question

Have a question about your personal investments? No matter how simple or complex, you can ask it here.
Post Reply
Topic Author
Varsh
Posts: 111
Joined: Fri Mar 18, 2022 9:50 am

Wash sale issue question

Post by Varsh »

Good Morning Friends!

I could use your opinion. If I sell my GOVT holding…for which I am not fond of…. I will incur a small loss. I am interested in VGIT, a similar fund. Should I first buy into VGIT, and then sell GOVT, later…. Would this amount to a wash sale issue….with negative impact?

I thank you all in advance for your assistance.
rkhusky
Posts: 17763
Joined: Thu Aug 18, 2011 8:09 pm

Re: Wash sale issue question

Post by rkhusky »

Varsh wrote: Sat May 21, 2022 9:36 am Good Morning Friends!

I could use your opinion. If I sell my GOVT holding…for which I am not fond of…. I will incur a small loss. I am interested in VGIT, a similar fund. Should I first buy into VGIT, and then sell GOVT, later…. Would this amount to a wash sale issue….with negative impact?

I thank you all in advance for your assistance.
They follow different indexes, so no wash sale. Sell GOVT, then buy VGIT with the proceeds.

Edit: GOVT has bonds with maturities from 1-30 years, average duration of 6.74 years. VGIT has bonds with maturities from 3-10 years, average duration of 5.35 years.
placeholder
Posts: 8421
Joined: Tue Aug 06, 2013 12:43 pm

Re: Wash sale issue question

Post by placeholder »

Remember that the criterion is "substantially identical" not "similar".
Post Reply