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I have dividend stocks in both my taxable and ROTH accounts. Is it permitted to do a swap between accounts without triggering a wash rule?
For example - Sell $3000 of XXX in taxable to get the tax credit, Sell $3000 of YYY within ROTH, then immediately buy $3000 of YYY in taxable and $3000 of XXX in Roth?
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Wow asw, that is an arcane tax question!
Here is my guess but make sure you talk to someone with an IRS license (CPA or EA) or call the IRS yourself.
Since an IRA of either type is basically 1.) a trust account that is tax-advantaged and 2.) there is no reporting requirement for transactions within the trust and 3.) is a separate tax entity apart from your taxable identity, the only thing relevant is you sold $3000 of XXX and bought $3000 of YYY in your taxable account. Therefore, I don't believe you are subject to the wash rule.
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“While the dividend itself is merely a rearrangement of equity, over time it's more like owning an apple tree. The tree grows the apples back again and again and again, and the theoretical value of the tree doesn't change just because of when the apples are about to fall.” - earthtodan
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Wash rules are only subject to taxable accounts. So this would be permissible.
