Mutual fund average basis rule - when can you revert to cost basis (actual cost of each share)?

According to Pub 564, once one selects an average basis method for a
particular fund, one must continue using that method until the IRS gives its
approval to change it. Most everyone believes that if one liquidates all
positions in a given fund (possibly in multiple accounts), then one can
start over with whatever method one chooses when one starts a new investment
in that fund.
1. Any citation for that rule? A quick search, at least, didn't turn up a
source.
2. Does one have to liquidate IRA accounts as well? One might think not,
but early this year the IRS put out a Revenue Ruling on wash sales, that
says that the wash sale rule applies (admittedly, a different rule) even if
one sells in a taxable account and repurchases in an IRA. Revenue Ruling
2008-5.
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So I don't have any idea about the interplay between IRAs and taxable accounts in the context of average basis accounting.
Mark Freeland
snipped-for-privacy@nyc.rr.com
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Mark Freeland

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