Ask Rande 10,000+

Top 266. Oct 9, 2001 6:03 AM

» Gadfly - wash sale

Good Morning,

I am contemplating harvesting some tax losses
from the sale of SPY and MDY. I would then
use the proceeds to purchase VTI. Any wash
sale problems from the similarity of the
securities?

Thanx,

Gad-

-- posted by Gadfly

Top 267. Oct 9, 2001 6:04 AM

» Gadfly - wash sale

Good Morning,

I am contemplating harvesting some tax losses
from the sale of SPY and MDY. I would then
use the proceeds to purchase VTI. Any wash
sale problems from the similarity of the
securities?

Thanx,

Gad-

-- posted by Gadfly

Top 268. Oct 9, 2001 6:07 AM

» Rande - Re: wash sale

In response to message posted by Gadfly:

Gad,

No wash sale problems as far as I can see. Similar is okay. "Substantially identical" is where you could run into problems. You may have a wash sale problem with those multiple posts, however. smile

-- posted by Rande

Top 269. Oct 9, 2001 6:32 AM

» Kirk - Re: Re: wash sale

In response to message posted by Rande:

I put the multiple posts in the spin cycle and shrunk them down to ONLY two so the joke would make sense. smile

I wonder if someone put a smart bomb in the path to our site? Sure is strange how it keeps cutting out.

-- posted by Kirk

Top 270. Oct 9, 2001 7:57 AM

» ed_from_chico - Wash sale

Rande, I'm going to sell QQQs for a short term tax loss. Can I buy the same amount of PeopleSoft Inc. without having a wash sale even though PeopleSoft Inc. makes up 1.25% of the NASDAQ 100?

The other option I'm thinking about, after listening to the advice on this thread, is to just buy VIPERS in place of the QQQs I sell off.

Thanks,
- Ed

-- posted by ed_from_chico

Top 271. Oct 9, 2001 8:10 AM

» Kirk - Re: Wash sale

In response to message posted by ed_from_chico:

That is no problem...

You can sell SPY and buy Vipers or VTSMX with no wash sale problems.

you can NOT sell Vanguard Index 500 fund and buy SPY as they are basically the same.

You can sell QQQ and buy MSFT as they are different.

It ONLY counts if they are basically the same thing give or take commissions and loads.

XLK for QQQ works because there are a few different securities even though there might be a 50% or more overlap.

SPY for VTSMX works also since SPY is ONLY 80% of VTSMX (give or take) and it is not a problem unil you get to 95% or more I'd think.

-- posted by Kirk

Top 272. Oct 9, 2001 8:36 AM

» Roger876 - Proceeds from Insurance policy

Question for Randy. I just turned 65 and I have a life insurance policy which has a maturity date of December, 2001. The proceeds from the policy are $33,000 of which $22,000 is a taxable gain. My question is this a long term taxable gain of which I would only be taxed at 20% or would it be ordinary income? I have a 23,000 loan against the policy of which I only pay 5% interest. I am debating whether to take the proceeds now or delay payment until later. Thanks

-- posted by Roger876

Top 273. Oct 9, 2001 8:51 AM

» Rande - Re: Proceeds from Insurance policy

In response to message posted by Roger876:

Roger,

The taxable portion is ordinary income. You can continue to defer the tax by borrowing against the value as you've done. Whether that continues to make sense is a number-crunching exercise and depends in large part on your marginal tax bracket and alternative investment/use of the borrowed funds, but typically the policy loan is a better answer than taking the tax hit.

-- posted by Rande

Top 274. Oct 9, 2001 9:23 AM

» burkmorz - Re: Re: Re: Re: Re: Re: Tax loss season is coming

In response to message posted by Rande:

Gotcha, Rande.. smile .....thanks so much for taking the time...I really appreciate it...

-- posted by burkmorz