Hi Everyone,

I talked to a friend yesterday whose broker sold a mutual fund to get a tax loss and then bought a similar fund right after wards. The fund purchased was not from the same company, but he told my friend that they are virtually the same.

I believe that this is considered a wash sale by the IRS and the loss will not be allowed. I want to make sure if someone recommends this to you that you are aware that this is likely not allowed under the current tax laws.

I do think it is a little more difficult to assess a wash sale with mutual funds, but if you buy a fund that is virtually the same as the one you sold just from a different company, it could be considered a wash sale.

As always, please feel free to comment.

Cheers,

Patrick