tax loss harvesting

D

drcha

Any accountants here?

If I own a stock or etf that has fallen, can I sell it on Dec. 31 in my taxable account, buy it back on the same day in a retirement account, and take the loss? In other words, do wash sale rules apply across account types?

thanks
 
I am going to harvest some Kind 420 now in the yard and hang it to dry!

Can I write off my gardening supplies on my 2009 return?
 
that is not a good idea. a better idea is to sell your down etf and rebuy a different etf that is substantially similar but arguably different exposure/is not the same thing. for example if u reallocate to an etf with lower expenses you can justify that on investment rather than tax avoidance grounds so it is not merely a tax ploy.
 
Quote from drcha:

Any accountants here?

If I own a stock or etf that has fallen, can I sell it on Dec. 31 in my taxable account, buy it back on the same day in a retirement account, and take the loss? In other words, do wash sale rules apply across account types?

thanks
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No, you cannot do that. You can call the irs to verify.
 
that is why anything you do needs to have a clear, logical, non tax INVESTMENT rationale behind it. Effective tax loss harvesting is simply timing your already intended and logical reallocations, not trying to scam the IRS.
Moving to an etf with a different exposure or lower expenses is a legit move. rebuying the same etf is not. Disclaimer though, this is what I was taught however I am not a tax lawyer so not a verified expert.
 
Thanks everyone, for your answers. I appreciate it. No, I definitely don't want to scam the IRS, so it's good to know what works and what doesn't. As usual, "they" have already thought of everything :)
 
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