Skip to main content
Message Font: Serif | Sans-Serif
No. of Recommendations: 0
I understand the Wash Sale rule with regards to individual lots of stock, but how is it handled with the fractional nature of mutual fund shares (eg. you may sell 145.675 shares for a loss, then buy back 165.234 shares within 30 days). How are fractional shares treated? Please don't tell me that you have to do proportional analysis on the shares bought & sold, and also with relation to basis, etc, that would drive me crazy. I have always assumed that, unless the ACTUAL identical number of shares were bought back, that substantial equivalency didn't exist, and the wash rule didn't apply. However, more & more, software from mutual funds seems to highlight these transactions as wash sales, which would alert the IRS, even if the reason may be invalid. Anyone know for sure?

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.