A tax swap entails selling bonds with tax losses and buying bonds with tax gains.

Name: A tax swap entails selling bonds with tax losses and buying bonds with tax gains.
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A tax swap involves selling securities that are at a loss and immediately buying similar (but not identical, to avoid the wash sale rule) securities, to realize the losses for tax purposes while maintaining a similar investment position, not specifically buying bonds with tax gains.

A Tax Swap Entails Selling Bonds with Tax Losses and Buying