Mutual fund cash out question?

C50

C50

Senior Member
Location
Ohio, USA
I invested a chunk of money back in 2018 in mutual funds, the entire amount was already taxed dollars. I have not made any additional investment into those accounts as I wanted it to be a stand alone investment.

If the market continues to slide and I cash it out when it hits the original investment amount is that just a wash tax wise? As in no gain, no loss, no taxes due?
 

C50 said:
I invested a chunk of money back in 2018 in mutual funds, the entire amount was already taxed dollars. I have not made any additional investment into those accounts as I wanted it to be a stand alone investment.

If the market continues to slide and I cash it out when it hits the original investment amount is that just a wash tax wise? As in no gain, no loss, no taxes due?
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Yes, it would be a wash sale.
 
I am sorry, but a "wash sale" is something different. If the OP's buy and sell price are the same, there is no tax liability, and it can be called a "wash".
Below is the definition of a "wash sale":
A wash sale occurs when you sell or trade securities at a loss and within 30 days before or after the sale you: Buy substantially identical securities, Acquire substantially identical securities in a fully taxable trade, or. Acquire a contract or option to buy substantially identical securities.
 

bowmore said:
I am sorry, but a "wash sale" is something different. If the OP's buy and sell price are the same, there is no tax liability, and it can be called a "wash".
Below is the definition of a "wash sale":
A wash sale occurs when you sell or trade securities at a loss and within 30 days before or after the sale you: Buy substantially identical securities, Acquire substantially identical securities in a fully taxable trade, or. Acquire a contract or option to buy substantially identical securities.
Click to expand...
C50 ----"I invested a chunk of money back in 2018 in mutual funds".

Bottom line call it what you want but there should be no tax.
 
You will not be taxed on the sale of your investment principal if the buy and sell share price are the same. If you were paid dividends and capital gains, you may be taxed on those according to your specific situation.
 
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