I've got a naive question on wash rules. I'm wondering why October selling is attributed to the wash rules, when the 30-day limit would seem to support tax loss sales through November?I'm looking at a tax sale in which I buy, say 200 shares of ABC @ 25 to average down the 200 shares of ABC I currently own at a basis of 50. Buying on Nov 1, I can buy and hold to average down while preserving the option to sell my original 200 shares (@ 50) for a tax loss in december, maintaining my original position of 200 shares (albeit, resetting the long-term gain holding period).Am I missing 30 days somewhere on my calendar?Thanks.
Here's what I think you may be missing. Mutual funds have their own year-end which in alot of cases is October and so they may be selling so that when the capital gains distributions are done these may be minimized in some cases. So, for them, they would sell in October to realize the loss and couldn't buy back till a month later assuming they would.Also, the key is to note the selling done and not to look at the buying which can make some sense in actively managed funds as they may choose to dump so-called losers and go hunting for those few great stocks to make their returns look better.JB
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