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Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121099  
Subject: Re: Capital Loss (And, replacement purchases) Date: 9/2/2001 1:40 AM
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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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