Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 1
There is no difference whether he sold all the shares or part of them--What matters is if any account, you bought shares within 30 days before or after.

Sorry, edco, not true. If he sold all the shares, then he can't have a wash. Remember the result of a wash sale is that the unclaimable loss is added back to the basis of the remaining shares. How could that be if there are no remaining sales?

But that's a practical argument. If you look up the definition of a wash sale, its that you bought shares (within 30 days) that you *did not sell* as part of the sale (as the OP quoted). If you sold them all, they you obvoiusly sold those.

He didn't say anything about reinvesting, let alone dividends from a Bond Fund??

Bond funds absolutely do pay dividends, they're just not qualified dividends. Unless you want to be the one to tell Vanguard that the 1099-DIV I got for my bond funds with the total amount in box 1a (but none in box 1b) is wrong.

Second, we were talking about reinvesting dividends regularly, such that your monthly payout goes back to buy more shares of the fund. While not universal, this is typical. Therefore, if you had 1000 shares of a fund, and were getting 10 more share ever month, and in the middle of March, you sold 500 of those shares. Then your Feb 28th and March 31st dividend reinvestment would be buying shares within 30 days of your sale. So those number of shares would be a wash sale.

1) If the OP sold the shares for a loss
2) The OP was reinvesting dividends (or otherwise bought shares within 30 days)
3) The OP did not sell all the shares of the fund

Then the OP has a wash sale on the number of shares which is the lesser of:
1) The number of shares bought within 30 days
2) the number of shares remaining in the fund after the sale
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.