Any way to lock in gains w/o paying short term rates?

[spider]

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That related industry thing is a common way to avoid wash sales. Especially with ETF's, if it's a large part of an index (hint, Apple).

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Thanks, that's part of what I was trying to find out here: what is the standard practice? I have no intent of doing anything unethical here. At the same time, if there are accepted/legal/ethical ways to minimize taxes, I'd like to know my options of course.

So I probably should have used my actual stock(s) in question here in the first place, which are the emerging market ETFs EEM & VWO. I'm realizing now that if I only had EEM, I could buy some puts on VWO and problem solved.

As it is I will probably look around for another ETF that seems close enough, though I think those are the two major ones, EEM especially.

[DcifrThs]

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[ QUOTE ]
That related industry thing is a common way to avoid wash sales. Especially with ETF's, if it's a large part of an index (hint, Apple).

[/ QUOTE ]

Thanks, that's part of what I was trying to find out here: what is the standard practice? I have no intent of doing anything unethical here. At the same time, if there are accepted/legal/ethical ways to minimize taxes, I'd like to know my options of course.

So I probably should have used my actual stock(s) in question here in the first place, which are the emerging market ETFs EEM & VWO. I'm realizing now that if I only had EEM, I could buy some puts on VWO and problem solved.

As it is I will probably look around for another ETF that seems close enough, though I think those are the two major ones, EEM especially.

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those are ETFs...MSCI does emerging market indexes (in addition to EAFE i believe) that i'm sure are insanely highly correlated to your ETFs so why not do your strategy (whatever you choose) on the MSCI indexes.

Barron

[spider]

EEM & VWO are both based on MSCI's Emerging Markets index, although I think their actual samples differ quite a bit (VWO uses a much larger sample, or vice versa, I can't remember). I'm sure I can find another ETF that is closely correlated, I just haven't looked into it yet.

[DcifrThs]

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EEM & VWO are both based on MSCI's Emerging Markets index, although I think their actual samples differ quite a bit (VWO uses a much larger sample, or vice versa, I can't remember). I'm sure I can find another ETF that is closely correlated, I just haven't looked into it yet.

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well if you can't find another highly correlated ETF, just short the MSCI EMI, right? (or buy OTM puts or whatever)... i mean the ETF is technically a different security than the MSCI EMI right?

anyways, hope this all works out.

Barron

[Jcrew]

According to this article buying put options would not trigger a constructive sale because of the one way nature of the hedge ... only if the hedge disallows both gains and lost (ie. future and forwards, direct short).

BTW what tax software do you use if any?

[spider]

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According to this article buying put options would not trigger a constructive sale because of the one way nature of the hedge ... only if the hedge disallows both gains and lost (ie. future and forwards, direct short).

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Huh, I wonder if that article is out of date... I can't see any date on it...

Anyway, I was mostly looking at IRS pub 550 around pages 57-58. That was the basis for what I mentioned earlier, that if the underlying security is short term when you buy the put, it locks the short term rates on the stock, even if you hold the underlying stock itself for over a year.