Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 12-05-2015, 02:40 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Quote:
Originally Posted by Seattle View Post
So, based on that, I should go ahead and take the $44K of LT cap gain distributions, use my $200K of losses to offset it and I am further ahead then with little tax issues?
No. I think that was bad advice misunderstood. You told us if you sell now, then you will realize a loss. By realizing a loss now before the distribution, you get other taxpayers to help pay you for your loss. Sell now before the distribution and increase your carryover losses from around $200K to $225K and use them wisely in the future.

And folks in the 39.6% marginal income tax bracket pay qualified dividend taxes at something like 23.8% (not 15%, not 20%) and non-qualified dividends at 39.6%.

While you won't pay that on the LTCG distribution if you get it after you sell because you will end up selling by $44K less (get it? Paid $44K LTCG, fund drops $44K simultaneously, you sell for loss of $44K+$25K), it is that dividend distribution that you don't want that will be paid at the same time.
__________________

__________________
LOL! is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-05-2015, 03:59 PM   #22
Thinks s/he gets paid by the post
 
Join Date: Jul 2002
Posts: 1,038
Quote:
Originally Posted by LOL! View Post
No. I think that was bad advice. .

Wasn't advice but a statement of fact that the carried losses will take care of the CG distribution so no concern should be warranted. See post #19 for my advice. I agree with your conclusion.
__________________

__________________
RE2Boys is online now   Reply With Quote
Old 12-05-2015, 04:08 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
audreyh1's Avatar
 
Join Date: Jan 2006
Location: Rio Grande Valley
Posts: 16,463
Quote:
Originally Posted by RE2Boys View Post
Wasn't advice but a statement of fact that the carried losses will take care of the CG distribution so no concern should be warranted. See post #19 for my advice.
Only the long-term cap gain distribution. Won't help with shirt-term cap gain dist or any non-qualified dividends which Wellesley will certainly be paying out a good chunk since it is 60% bonds.

Short-term cap gain dists from mutual funds are a problem, because they are always treated as ordinary income by the 1040D - you never get to apply them against cap losses.

They may be a small percentage of the total dist, since they usually are, but since Vanguard doesn't specify the breakdown between short and long in their estimate doc, this is an unknown. Well, OK, they say that info will be released on Dec 11.

But by selling ahead, the poster can guarantee everything will be treated as a capital loss.
__________________
Well, I thought I was retired. But it seems that now I'm working as a travel agent instead!
audreyh1 is offline   Reply With Quote
Old 12-05-2015, 05:14 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,616
Quote:
Originally Posted by RE2Boys View Post
Wasn't advice but a statement of fact that the carried losses will take care of the CG distribution so no concern should be warranted. See post #19 for my advice. I agree with your conclusion.
Sorry, changed my response.
__________________

__________________
LOL! is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Fund year end distribution estimates ? Delawaredave5 FIRE and Money 1 10-17-2010 01:17 PM
Large Short-Term Cap Gains Distribution scrabbler1 FIRE and Money 10 06-15-2010 11:05 AM
Cost Basis - Capital Gains Question Jeb-NY FIRE and Money 16 11-13-2006 08:24 PM
Capital gains question regarding housing Mwsinron FIRE and Money 2 07-31-2006 07:14 PM
capital gains tax question just_hatched FIRE and Money 5 01-31-2006 11:07 PM

 

 
All times are GMT -6. The time now is 08:52 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.