A.I.M. Users Bulletin Board

[SFSecurity]

Hi Mvls, In looking back I noticed your post about"

but one annoying result is that a number of my sell points ended up being at or below my average cost now. My question is how best to fix this?

What I did, by accident, was to sell Highest Cost and then buy back at the lower price. What happened is that it was a wash sale and it raised my basis over 18% so that when I sold out that position I got a bigger loss to offset gains on everything else.

I'd suggest doing this and then at an opportune moment more than thirty days from the last transaction close that position and use the money to buy a similar position. If you were closing VNQ you might consider XRE. Both are REIT index funds so you maintain the roughly the same exposure. I'm not saying that is the best choice for a parallel fund, just an example for discussion.

In my case I wiped out almost all the capital gains on other positions with the $13,000 boost in basis. My accountant loved it when we went through all the stuff and confirmed the increase in basis. She had me explain, in depth, how it came about. I told her that is was tiredness at work, not intelligence. She laughed and said I might want to repeat it.

Best,

Allen