Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Old 05-19-2013, 08:07 PM   #21
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by Amethyst View Post
I think you are saying that in such a scenario, Fidelity would have tracked all our transactions (except the taxes paid on the dividends, which I can track back at least 3/4 of the time we've owned those funds).

In fact, I can see on Fidelity's web site that they have calculated our current on-paper gains since purchase.

What I am not quite following, is how we can transfer the cash to VG without tax consequences. I have done this with IRAs - are you saying VG can facilitate the same kind of transfer with taxable accounts, wherein Mr. A. and I never "touch" the cash during the transaction?

thanks,

amethyst
Two things: no, your idea of how to transfer the funds will not work. If you wind up with any cash or fund shares other than the exact same shares that you now own, you will owe taxes. And the second thing is that the taxes you have paid all along do not have to be calculated; they have nothing to do with anything after the year in which you pay them.

You haven't yet said what you hope to gain from this transaction. IT appears to me that the sensible thing to do, if you cannot just transfer the exact same Fidelity Fund to Vanguard, is to leave it at Fidelity. It doesn't cost you anything to leave it there.

You haven't really said what your goal is. If it is to save money on fund operating expenses, the only way you can accomplish that is to take your gain and pay your tax- which will only make sense if you have de minimus gains and/or a huge difference in the expenses of the current fund and the one you plan on holding at Vanguard.

Don't rush unless you understand every aspect of this.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   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 05-19-2013, 08:22 PM   #22
Recycles dryer sheets
 
Join Date: Jul 2008
Location: Sacramento area
Posts: 444
To clarify HA... Ha is correct in that the taxes themself do not enter into the situation. BUT the important thing is that the dividends were used to reinvest into more shares. And the fact that they were taxable means that the additional shares have basis. In really werid cases we have scoured back tax returns for the amount of taxable dividends, looked up the dividend rate for those years and the share price on dividend dates and backed into # of shares acquired over time with a really close approximation of actual cost.... close enough that we believed it would stand the test of an audit. Thankfully we never had to prove THAT.
__________________

__________________
AWeinel is offline   Reply With Quote
Old 05-19-2013, 08:34 PM   #23
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
 
Join Date: Jun 2005
Posts: 8,627
I wonder if we should advise folks with new taxable accounts to sell everything after 2 years? And to be sure to automatically reinvest distributions, too.

At least that way, they would learn how to deal with the tax reporting while all their transactions were fresh in their statements.
__________________
LOL! is offline   Reply With Quote
Old 05-19-2013, 08:35 PM   #24
Give me a museum and I'll fill it. (Picasso)
Give me a forum ...
haha's Avatar
 
Join Date: Apr 2003
Location: Hooverville
Posts: 22,387
Quote:
Originally Posted by AWeinel View Post
To clarify HA... Ha is correct in that the taxes themself do not enter into the situation. BUT the important thing is that the dividends were used to reinvest into more shares. And the fact that they were taxable means that the additional shares have basis. In really werid cases we have scoured back tax returns for the amount of taxable dividends, looked up the dividend rate for those years and the share price on dividend dates and backed into # of shares acquired over time with a really close approximation of actual cost.... close enough that we believed it would stand the test of an audit. Thankfully we never had to prove THAT.
Yes; thank you, you are certainly correct. I think Fidelity tracks cost including dividend re-investment, and has for quite some time. So she should be able to get this just by looking at her positions page.

I never do re-investment of dividends except in tax deferred or tax free accounts, just to avoid the hair pulling exercises that you mention. In fact, I rarely hold mutual funds anywhere except in tax deferred accounts.

Ha
__________________

__________________
"As a general rule, the more dangerous or inappropriate a conversation, the more interesting it is."-Scott Adams
haha is online now   Reply With Quote
Reply

Tags
fidelity, mutual funds, taxable, trowe price, vanguard


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


 

 
All times are GMT -6. The time now is 05:54 PM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2017, vBulletin Solutions, Inc.