JHZR2
Staff member
Trying to discuss wash sales and takin losses. Can't quite find this scenario.
Say you want to sell a security to take a loss. I get that you can't buy the same or sunstantially the same security within 30 days. But apparently there is an impression that to take the loss, you have to sell all securities that are substantially similar, taking your holdings to zero.
A hypothetical example - I have two REITs. One is doing well and one is doing poorly. I want to sell the one that is doing poor to take a loss. Obviously within 30 days I cannot sell the bad one and dump the money into the good one - that would be a wash sale. But:
1) do I need to sell shares in both the good and bad REITs to be able to coun the loss, such that my portfolio has no exposure to that security type?
2) if the good REIT pays a dividend in that 30 day window, and it is reinvested (effectively a purchase), does that dividend count as a wash sale or against the loss being taken?
Thanks!
Say you want to sell a security to take a loss. I get that you can't buy the same or sunstantially the same security within 30 days. But apparently there is an impression that to take the loss, you have to sell all securities that are substantially similar, taking your holdings to zero.
A hypothetical example - I have two REITs. One is doing well and one is doing poorly. I want to sell the one that is doing poor to take a loss. Obviously within 30 days I cannot sell the bad one and dump the money into the good one - that would be a wash sale. But:
1) do I need to sell shares in both the good and bad REITs to be able to coun the loss, such that my portfolio has no exposure to that security type?
2) if the good REIT pays a dividend in that 30 day window, and it is reinvested (effectively a purchase), does that dividend count as a wash sale or against the loss being taken?
Thanks!