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As everyone I have incurred capital losses on my mutual funds this year. I still like my funds, but it is tough to ignore the tax benifits of claiming these losses. What I want to know, is can I transfer my $$
between funds of the same family and "generate" the losses?
then, in 31 days or before Nov 30, when the funds distribute gains and
losses for the year, can I switch back to my original fund without any
tax penalty?


Yes, you can. The only prohibition is that the fund you buy can't be "substantially similar" to the old mutual fund. That means own substantially different stocks or management styles or objectives. Check your mutual fund prospectus though. What you're talking about is called a "round trip" and fund families do not like it. I have accounts at Vanguard and T Rowe Price. They have similar funds, so I just moved some of mine from one to the other to take the loss. I have no intention of moving them back.


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