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Dodgeball,

I hope you'll come back and give us the additional information we need to settle this and fully answer your question. Don't give up on us, please :)


If the original purchase was in 2 lots, even if at the same time (but not simply a split arbitrarily by the broker) and only one lot was sold, the other lot would be replacment shares for that sale if it was at a loss. This concept has been discussed many times on this board and others.

If I'm reading you right, this *may* be our confusion. I think when Debra and I were saying if 'all shares' were sold, we weren't talking about all shares of one lot or another. We were talking about *all shares*, so that when its done, you hold nothing of the fund at all, anywhere. I'll illustrate below.


I agree that monthly distributions could be replacement shares making the sale a wash sale, but OP didn't mention any such thing so OT remarks regarding that shouldn't be intermixed with comments regarding the remaining shares.

The OP never said anything about remaining shares either. It is absolutely on topic to ask the OP all relevant factors, which includes whether there were reinvested dividends. As well as if there were any remaining shares.

You say our comments on reinvested dividends are OT because the OP didn't mention it. But yet your comments on remaining shares aren't OT even though the OP didn't mention that either? Fact is, both are entirely relevant to answering the question.


On most other boards the entire thread remains visable so you can copy quotes from several posts and respond to each independently in the same reply.

I agree that TMF board software isn't the greatest. Don't even bring up the search feature ;). I wasn't offended or anything... it just made me wonder how closely you were reading if you got my name wrong. Then I saw that Debra responded too.


Anyway, here's the illustration I promised.

You buy 1000 shares of a fund at $10 each:
Buy 1000 @ $10 = $10,000

Then you get a monthly dividend of $50 which buys exactly 5 shares more each month, for 10 months.
Jan Buy 5 @ $10
Feb Buy 5 @ $10
Mar Buy 5 @ $10
Apr Buy 5 @ $10
...
Sep Buy 5 @ $10
Oct Buy 5 @ $10

So you now have 1000 + 10*5 = 1050 shares, for a total cost basis of $10,500.

On November 5th you sell all 1050 shares of the fund (not all of the original lot, but *all* of the fund). The share price has finally changed and is now $9.90, so you have a 10 cent loss per share, for a total loss of $105.

This is the sum total of your transactions in the fund. You do not re-enter it with 30 days after November 5th, nor ever.

So:
1) You have a loss
2) You have bought shares (end of Oct) within 30 days of your sale date (Nov 5th).
3) However, since you sold all shares, you also sold the October replacement shares.
4) Therefore, you do not have a wash sale.

If you disagree, I would ask you to describe how you feel this should be reported on a schedule D to indicate a wash sale.
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