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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, but you're "buying a dividend." Sell $8,000 fund A for Fund B for $2,000 loss Oct 10. Nov 20 exchange back. Nov 30 $500 dividend and $500 CG distribution from fund A. Net result $1500 net loss plus $500 taxable dividend, basis $9000.

Alternative 1 exchange Fund A to B Dec 1 back Jan 2, after distribution.
$3000 loss(pricw goes down $1000 for $1000 distrbution. Net result $2500 net loss plus $500 taxable dividend, basis $8000. This saves $200 on this years tax return.
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