Hello - have a fund that recently converted to a mutual fund to an ETF have used the previous fund as a drip fund since 2015 to 2021, I have decided to sell a portion as I don’t like the mix of the fund that it was converted into. This fund is a mixture of gains and losses. The question is, Is it better to sell the losses as well as the gains or just sell gains or losses? Also since it is the same fund if I sold a mixture of losses and gains the result should be still a gain am I able to income average the sale?
Sorry previous statement should have read.
" have a fund that recently converted from a mutual fund to an ETF "
Your losses get deducted from your gains. You should be ok as long as you have net gains for the tax year. Losses can only reduce your ordinary income by $3k per year with excess carried over to future tax years.
I’m not aware of any tax averaging available now, but spreading sales over multiple tax years could be your best path.