Quote:
Originally Posted by RE2Boys
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.
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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.