Key insights
- The post discusses potential wash sale implications from trading VCLT (corporate bond ETF), VOO (S&P 500 ETF), and SPHY (another ETF, likely bond-related). While the user focuses on ETFs being 'different assets', the wash sale rule hinges on 'substantially identical' securities. Rebuying a similar bond ETF after selling VCLT at a loss could trigger the rule, disallowing the loss. The impact is slightly negative as it highlights potential tax inefficiencies in retail trading strategies.
Apologies if this violates the rules. I'll be reposting this under tax questions.
Here's the background.
I had money invested in VCLT which is an ETF for corporate bonds. Sold that last month (less than 30 days ago) at a loss (long term) and bought a bunch of VOO. Just sold my VOO and purchased SPHY which is similar to VCLT. When I look at the rules for wash sales it says that if I rebuy the same or similar asset I can't use the losses.
My question is, if it's a different ETF is that automatically a different asset or do I need to worry about the fact that they are in similar asset classes?