tax loss harvesting

Any accountants here?

If I own a stock or etf that has fallen, can I sell it on Dec. 31 in my taxable account, buy it back on the same day in a retirement account, and take the loss? In other words, do wash sale rules apply across account types?

thanks

 

Next yuppified term I hear I'm goin
g to puke

tax loss harvesting. YUCK!

 

I am going to harvest some Kind 420 now in the yard and hang it to dry!

Can I write off my gardening supplies on my 2009 return?

 

that is not a good idea. a better idea is to sell your down etf and rebuy a different etf that is substantially similar but arguably different exposure/is not the same thing. for example if u reallocate to an etf with lower expenses you can justify that on investment rather than tax avoidance grounds so it is not merely a tax ploy.

 

No. In fact, if you do this, the deduction for the loss is permanently disallowed.

http://www.fairmark.com/capgain/wash/wsira.htm

 

No, you cannot do that. You can call the irs to verify.

 

that is why anything you do needs to have a clear, logical, non tax INVESTMENT rationale behind it. Effective tax loss harvesting is simply timing your already intended and logical reallocations, not trying to scam the IRS.
Moving to an etf with a different exposure or lower expenses is a legit move. rebuying the same etf is not. Disclaimer though, this is what I was taught however I am not a tax lawyer so not a verified expert.

 

Thanks everyone, for your answers. I appreciate it. No, I definitely don't want to scam the IRS, so it's good to know what works and what doesn't. As usual, "they" have already thought of everything

 

they thought of "everything" because people like you thought of it and got away with it at some point.