I have a large amount of stocks that have pretty much gone into the toilet and are expected to be there for a long time. I’d like to sell a bit of them to harvest the capital losses. I have some SPY index funds that have about 10% unrealized gains. I don’t need to liquidate my stocks for any cash. I was wondering if I should sell a bit of SPY to realize the gains, realize the losses in my garbage stock, and repurchase SPY again right after?
I know there’s some caveats with wash sales but that seems to only apply to losses which wouldn’t be applicable since I’m repurchasing SPY. I will also probably hold onto SPY for another year so no concerns with waiting them out to become long term capital gains again.
Anything to be aware of?
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