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URL:  http://boards.fool.com/wash-sale-quotsubstantially-identicalquot-10115238.aspx

Subject:  Wash sale: "Substantially Identical"? Date:  2/26/1998  4:06 PM
Author:  JackPoint Number:  2246 of 121426

Okay-- as I understand it, it's a "wash sale" if I sell a security, and buy a "substantially identical" security within 30 days. My question is about the meaning of "substantially identical".

Suppose I just took a big loss on my shares of the Vanguard S&P 500 Index Fund (it could happen, if I buy at just the wrong time...) I want to stay invested, but realize the loss. So I sell all my shares of the Vanguard S&P 500 Index Fund, and I reinvest right away in the Schwab S&P 500 Index Fund. Is that a wash sale? The two mutual funds are invested the same way, and perform about the same, but are run by different companies.

Thanks,

--AMS

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