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Started By
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Anyone using the wash sale rule during this market drop?
Posted on 4/6/25 at 1:29 pm
Posted on 4/6/25 at 1:29 pm
Wondering if anyone is booking their losses now to help reduce their income taxes and then buying back in 30 days.
Feels like this market will take more than a month to recover.
Feels like this market will take more than a month to recover.
8
Posted on 4/6/25 at 3:50 pm to TDFreak
Not yet but, but I'll probably do a bit of loss harvesting. Just need to make sure none of my spouses accounts are set to auto reinvest dividends in same funds to make sure we dont accidentally trigger wash sale. Also have to account for purchases in past 30 days. Also need to find a suitable substitute investments that arent "substantially identical." I have no intent to sell and sit capital on sideline for 30 days just to potentially buy in at higher price.
This post was edited on 4/6/25 at 4:15 pm
Posted on 4/6/25 at 3:58 pm to TDFreak
You mean avoiding the wash sale rule
Posted on 4/6/25 at 4:06 pm to theRealJesseD
Yeah, avoiding of course. I meant: is anyone selling this drop with the intent of buying back in 30 days.
So I’m basically asking in another way: Do you think this downturn will still be in-effect a month from now? I have a feeling it will (but I don’t have anything i can sell and realize a loss with on my taxes).
So I’m basically asking in another way: Do you think this downturn will still be in-effect a month from now? I have a feeling it will (but I don’t have anything i can sell and realize a loss with on my taxes).
Posted on 4/6/25 at 4:12 pm to TDFreak
You can trade around it by buying calls if you are worried it goes back up in 30 days. You can even buy 2 mos and sell 1 mo calls if they are expensive. Exit after 30 days.
This post was edited on 4/6/25 at 7:47 pm
Posted on 4/6/25 at 4:38 pm to bama1959
Selling cash covered puts is the better short term trade here
This post was edited on 4/6/25 at 4:40 pm
Posted on 4/6/25 at 6:54 pm to TDFreak
Exactly....there's more as well.
Posted on 4/6/25 at 7:24 pm to TDFreak
You have to be out for 30 days, so you buy on the 31st day.
Posted on 4/6/25 at 7:36 pm to TDFreak
quote:
Feels like this market will take more than a month to recover.
A month? This shitstorm could take years.
Posted on 4/6/25 at 7:58 pm to TDFreak
I find the best way to do this is to sell S&P 500 ETF if you have it and by a Total Market ETF, thus avoiding the “Wash Sale”, but still getting back into the “market”. These 2 ETF do not meet the “substantially similar” test.
Posted on 4/6/25 at 8:07 pm to TDFreak
This dump is too aggressive to manage that IMO. If you weren’t positioned maybe not the best time to get cute. We could whipsaw back in a moments notice. This whole thing is complete self inflicted. Now, they longer it goes on the more tangible damage we’re going to get.
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