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REDDIT

Is a ‘wash buy’ a thing?

A
Feb 20, 2025 · 18:40

Hi, I’m having trouble finding an answer as I’m not sure what sort of terminology to search for.

As I understand, If you sell at a loss and immediately buy the same/similar security, you can’t claim the loss, ie. it’s not a taxable event. Does this apply when selling for a profit as well?

More specifically, I’ve learned that mutual funds are not tax favorable in my situation. So, I want to sell the mutual fund and replace with an equivalent ETF. Will the profits be taxable?

Thank you for the help in advance.