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Tax implications of selling and buying a few weeks later

D
Feb 13, 2025 · 01:18

Hi everyone, I am thinking about applying for Designated Activities visa in Japan. A part of that is having around $194,000 in liquid assets.

Most of my money is invested(401k, Roth IRA and a brokerage). I've never sold any funds before so I have never had to deal with the taxes involved with that.

If I were to sell like $160,000 of ETFs and keep it in a money market for a few weeks or so until the VISA is approved, and then buy back the ETFs with the same money, what would be the tax implications/burden of that?

I assume it would qualify as realized gains and I would still need to pay the tax on it for 2025 even if I reinvest it. But since I haven't sold before I was curious if anyone might have some insight on this scenario?

Thanks!