Wash Sales and Mutual Funds

The IRS has created several rules in order to discourage loss-oriented selling, such as the wash sale rule. According to this rule, if you purchase shares of a mutual fund (including reinvested dividends) within 30 days before or after you redeemed shares of the same mutual fund for a loss, the redemption is considered a "wash sale" and some or all of your capital loss will be deferred. The amount of your deferred loss increases the cost basis of the shares purchased within the 30-day window.

Learn More... Mutual Fund Dividends

^{Please note: This information is provided only as a general guide and is not to be taken as official IRS instructions. Armen Computing Ltd. makes no investment recommendations and does not provide financial, tax or legal advice. Please consult your tax advisor or accountant to discuss your specific situation. You are solely responsible for your investment and tax reporting decisions, and you should carefully evaluate all information delivered to you by Armen Computing Ltd. and TradeLog. Not all information may be appropriate for all investors.}

• Capital Gains
• Wash Sales
• IRS Schedule D
• Mark to Market
• Which Form to File?
• Brokerage Reporting
• Common Misconceptions
• Options
• Futures
• Mutual Funds
• How are Mutual Funds Taxed?
• Wash Sales
• Mutual Fund Dividends
• Dividends