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TW101 writes (in part):

Would your answer be different for an "Exchange traded index fund" such as SPY (instead of a specific stock)if sold and replaced with a "mutual fund"?

I reply:

Mine might be. The wash sale rule applies to purchases that are "substantially identical" from an economic standpoint. Therefore, if you sold SPY at a loss and purchased an Index 500 fund to replace it, I think the wash sale rule would be triggered. However, if you chose a fund tracking a different index, I think you'd be fine. --Bob
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