tax loss harvesting

Pretty sure this is correct but want to double check with the experts:
Since I've got some good sized long-term losses, am expecting cap gains distributions from some funds in the taxable account and I could use some rebalancing too, I'm thinking of selling a large cap growth fund and putting the proceeds into a small cap value fund. I want to be sure that this will avoid the wash sale rule since I would do a transfer all at once.

Blixet,

The IRS has the rule, that selling at a loss and buying "essentially the same" investment within a range of 30 days before the sale date to 30 days after the sale date may create a wash sale.

About the only things that would create the wash sale is buying and selling the same fund in a different class within 30 days before or 30 days after the sale date. Also buying the same fund and class within that 61 day window.

You can create a wash sale if your IRA buys the same investment within the 61 day window you sold from your taxable account.
You can create a wash sale if a relative buys the same investment within the 61 day window that you sold from your taxable account.

Generally the opinion is that no 2 mutual funds are essentially the same. Selling the Large Cap and buying the Small Cap will not create a wash sale. From what you describe, you will not have a washsale.

There is more information about wash sales in IRS Pub 550, Sales and Trades of Investment Property.

Thanks for the info. I thought I'd be safe. I think I'm going to sell and buy after the dividend distribution (Dec 11). The large cap fund is slated to throw off a very small amount of divies and no cap gains. The small cap val fund is loaded with dividends and gains, both short and long term, so I plan on waiting until after distribution to invest the funds into it to avoid getting tagged with the taxes on that.