<< I have a bond mutual fund, which pays out monthly dividends, which I reinvest in the fund. This means I am buying new shares every 30 days or so.

If I sell some shares, will the wash sale rule apply to any capital loss?

To qualify for the capital loss do I have to suspend the dividend reinvestment for at least a month and then sell the shares? >>

Yes. Remember to leave 30 days without a purchase on each side of the sale.

Phil Marti
Tax Preparer