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.
Wash sale issue question
Re: Wash sale issue question
They follow different indexes, so no wash sale. Sell GOVT, then buy VGIT with the proceeds.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.
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.
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Re: Wash sale issue question
Remember that the criterion is "substantially identical" not "similar".