I'm roughly familiar with the purpose of wash rules ...
Is there a "reverse" wash rule also? I have some money in an S&P 500 fund with long term gains. I'd like to move it to an almost identical S&P 500 fund that has a better cost structure and more flexible rules (no commissions). The funds are otherwise almost identical.
Is there some way to make the move without triggering tax on the long term gains when I sell the existing fund?
Thanks,
Unfortunately, no. Just be glad you don't have capital losses carried over from earlier years. And this year is a good one to do the sale, since it's before the capital gains rate increases to 20%, if Congress does nothing.
Is a 1031 exchange possible? Is it true that some ETF's do swaps, and is a swap a 1031 exchange?
Stocks and other financial securities are ineligible for non-taxable exchanges, just like inventory, partnership interests, etc. (stock exchanged for stock in the same corporation can be non-taxable).
A 1031 exchange involves an additional element of deferral, where the exchange of property is not simultaneous. But it still has to be a non-taxable exchange in the first place.
-Mark Bole
Ugh. Thanks... the "do it this year" advice is appreciated.
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