Key insights
- The post discusses tax-loss harvesting by selling UnitedHealth (UNH) at a loss and buying CVS. While both are in the healthcare sector, they aren't considered 'substantially identical' by the IRS, so the wash-sale rule likely wouldn't apply. However, the potential tax benefits need to be weighed against transaction costs and the investment merits of each stock.
QUESTION ANSWERED - Thank you for the replies 🙏🏽
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Quick question: Does anyone know if selling United Health at a loss and buying CVS would trigger a Wash?
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Unnecessary details because of post length rules:
I own a bunch of UNH shares, and it's only slightly down, but CVS is a more interesting profile and pays a higher dividend. I'm thinking of harvesting the loss on the United Health and reallocating to CVS.
I want to make sure it doesn't trigger a wash rule because they're similar stocks. Does anyone have any experience with these two companies?