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Wash Sales and ETFs

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Devotee

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ETFs are offered by several companies and often their competing products have similar underlying assets. For example Blackrock has an ETF that covers the ASX200, Vangaurd has one that covers the ASX300.

 

When you sell a share and purchase shares again in the same company in a short period of time this can be considered a wash sale. What is the ATO views of selling an ETF offered by one company and then an ETF offered by another company that has the same or similar underlying asset class? Does the ATO view this in how they view selling and the buying again shares in the same company?

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Devotee

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Wash sales for ASX shares are generally only a tax issue when it comes to dividend washing.

 

Whilst 'Wash Sales' may come under some scrutiny, my understanding is that it is only to the extent IVa is involved - to deny any loss or deduction.

 

See TR 2008/1

 

I wouldn't imagine buying a different ETF (even if in the same class) could be classified as a wash sale.

2 REPLIES 2
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Best answer

Devotee

Replies 1

Wash sales for ASX shares are generally only a tax issue when it comes to dividend washing.

 

Whilst 'Wash Sales' may come under some scrutiny, my understanding is that it is only to the extent IVa is involved - to deny any loss or deduction.

 

See TR 2008/1

 

I wouldn't imagine buying a different ETF (even if in the same class) could be classified as a wash sale.

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Taxicorn

Replies 0

@TaxedoMask 

 

I believe that your thinking is correct.