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URL:  https://boards.fool.com/wash-sale-on-drip-securities-11993745.aspx

Subject:  Wash Sale on DRIP securities Date:  2/16/2000  9:23 AM
Author:  1000nam Number:  28822 of 128043

I am quite familiar with the wash sale rules on stock purchases. But do the rules also apply to mutual funds with dividend reinvestment?

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?

Thanks for your time and help.
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