Hello. I have scheduled automatic transfer to my fidelity index fund acct. I just noticed today that every month , day after transfer, I get this “W” wash sale note next to my portfolio.
Am I getting hit by it and paying more taxes? Should I invest every 2 months instead of monthly in order to avoid the 30 days wash sale penalty?? How does it work? Please help! Thank you
I wasn’t entirely sure what this was but Fidelity has a great article about it and how to avoid taxes. Are you swapping or selling stocks as well, or only purchasing more shares of the same index fund? You could also contact Fidelity customer support to understand what that means in your specific case.
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