2018 Year End Estimated Capital Gains Distributions

[MichaelB]

If it’s not on the list, there is no capital gain to distribute. It looks like normal monthly bond fund distributions (daily accrual) are not included. My guess is bond fund income distributions on this list are either quarterly or one time.

 

[SecondCor521]

That’s what is odd. Isn’t that a bond fund? So there will be a December div.

Yup. VBTLX is a Total Bond Market Index fund and pays dividends monthly. I think the document posted earlier is more for quarterly or annual distributions.

 

[audreyh1]

If it’s not on the list, there is no capital gain to distribute. It looks like normal monthly bond fund distributions (daily accrual) are not included. My guess is bond fund income distributions on this list are either quarterly or one time.

Yep, that was what I figured because VBISX isn’t there either and it’ll pay its monthly dividend Dec 31.

 

[googily]

Ditto VWUIX.

 

[Trooper]

Not to hijack this thread, but in general MF CG distributions are bad, correct? For example I own $1000 of Fund A which distributes $100 at Y-E. My fund is now worth $900, and I have $100 in my bank account (if I chose not to re-invest). However, I also have $100 of taxable "income" from this neutral position. Am I missing something?

 

[pb4uski]

Not to hijack this thread, but in general MF CG distributions are bad, correct? For example I own $1000 of Fund A which distributes $100 at Y-E. My fund is now worth $900, and I have $100 in my bank account (if I chose not to re-invest). However, I also have $100 of taxable "income" from this neutral position. Am I missing something?

No, you are not missing anything. However, for many here LTCG are tax-free so it wouldn't matter as much for those people. Where it really blows is when you just recently bought in and paid that $1,000.

 

[walkinwood]

Not to hijack this thread, but in general MF CG distributions are bad, correct? For example I own $1000 of Fund A which distributes $100 at Y-E. My fund is now worth $900, and I have $100 in my bank account (if I chose not to re-invest). However, I also have $100 of taxable "income" from this neutral position. Am I missing something?

Correct.

Another advantage of an index fund or ETF.

 

[GrayHare]

I'm expecting CG distributions to be about the same as last year. Is that what others are seeing?

 

[audreyh1]

I'm expecting CG distributions to be about the same as last year. Is that what others are seeing?

They are slightly higher for me - maybe 10% higher.

 

[Amethyst]

Yes, VTSAX quarterly div is there.

Yup. VBTLX is a Total Bond Market Index fund and pays dividends monthly. I think the document posted earlier is more for quarterly or annual distributions.

 

[UnrealizedPotential]

Not to hijack this thread, but in general MF CG distributions are bad, correct? For example I own $1000 of Fund A which distributes $100 at Y-E. My fund is now worth $900, and I have $100 in my bank account (if I chose not to re-invest). However, I also have $100 of taxable "income" from this neutral position. Am I missing something?

I don't think you are missing anything. My biggest year end distributions come from my T-ira and Roth, so I have no tax consequences from them. I have a lot of funds in ETF's, but they do not typically pay year end distributions. I do have a taxable bond fund that pays year end distributions and of course I have to pay taxes on that one.


I reinvest it, but unfortunately I still have to pay the tax on that taxable bond fund. I try my best to avoid year end distributions and I think I do a pretty good job of that, but it's hard to avoid it altogether.

 

[SecondCor521]

Vanguard distribution estimates here http://vanguard.com/pdf/RET891511_122018_final.pdf

My VFIAX dividend (which shows as pending under Holdings / Debits and Credits) is about $1.28 per share. I was surprised it was 5 cents more per share than what was listed in the link above.

 

[audreyh1]

My VFIAX dividend (which shows as pending under Holdings / Debits and Credits) is about $1.28 per share. I was surprised it was 5 cents more per share than what was listed in the link above.

Those are estimates, not the final number.

 

[SecondCor521]

Those are estimates, not the final number.

Of course. Just surprised that the estimate wasn't closer given when the estimate was published compared to when the dividend was paid and given Vanguard's excellent analytical prowess. No big deal; just a curiosity.

 

[Trooper]

Don't forget that VG International is after taxes. Your 1099 will include foreign taxes paid, which adds about 7% to the total, so you have to add at least 7% to those dividends to avoid going over any cliffs. Not sure if that's true of all international funds everywhere, but it is for sure at Vanguard.

But doesn't that ~7% come back as a tax credit?

 

[RunningBum]

But doesn't that ~7% come back as a tax credit?

Yes, but after MAGI, and any other tax calculation. If you're managing income for an ACA subsidy, or trying to avoid pushing LTCGs into being taxed, you have to take this into account.

 

[pb4uski]

Yes, you need to use ~107% of what you receive/expect to receive as that is what VG will report as dividend income.

 

[Trooper]

Yes, but after MAGI, and any other tax calculation. If you're managing income for an ACA subsidy, or trying to avoid pushing LTCGs into being taxed, you have to take this into account.

Yes, you need to use ~107% of what you receive/expect to receive as that is what VG will report as dividend income.

Thanks!

 

[Trooper]

Yes, you need to use ~107% of what you receive/expect to receive as that is what VG will report as dividend income.

Another question on this. Should the 107% be applied to just the December dividend or to the full year dividends from the fund?

 

[pb4uski]

Full year. The 7% is based on foreign taxes paid to total dividends paid over the last few years.

 

[RunningBum]

Yep, the full year. Compare the dividends you received over all of 2017 with the 1099 you received for it.

 

[scrabbler1]

Just thinking......doesn't this have the same "feel" as in late 2000? Remember how we got some really big CG distributions while the values of stocks and stock funds were dropping big?


Another thing I remember from some years ago was how my federal income taxes rose slightly even when I received some CG distributions which were taxed at 0%. Took me some time to figure out why even though I have a spreadsheet I updated when new data arrived. Turned out that I was itemizing my deductions including medical expenses. An increase in LTCG lowered my deductible med expenses a tiny bit which raised my taxable income.

 

[RunningBum]

My VFIAX dividend (which shows as pending under Holdings / Debits and Credits) is about $1.28 per share. I was surprised it was 5 cents more per share than what was listed in the link above.

I can finally see what I'll be getting under a Dividends, Capital gains, and interest header I don't normally see. And I only see it in the old style more condensed format https://personal.vanguard.com/us/TPView , rather than the larger font and spacing display that is the new (or worse) default view.

VTSAX was over 10% higher than estimated, and VTIAX was about 5% higher. Just shows not to rely on those early December estimates.

 

[Trooper]

I can finally see what I'll be getting under a Dividends, Capital gains, and interest header I don't normally see.

Hmm...I don't see that. I just go to my Transaction History throughout December and key the numbers into a spreadsheet that calculates our taxable income. I use that spreadsheet to determine our Roth conversion for the year.

 

[audreyh1]

Just thinking......doesn't this have the same "feel" as in late 2000? Remember how we got some really big CG distributions while the values of stocks and stock funds were dropping big?


Another thing I remember from some years ago was how my federal income taxes rose slightly even when I received some CG distributions which were taxed at 0%. Took me some time to figure out why even though I have a spreadsheet I updated when new data arrived. Turned out that I was itemizing my deductions including medical expenses. An increase in LTCG lowered my deductible med expenses a tiny bit which raised my taxable income.

Not to me. We were going through an election stalemate at that time, waiting for the Florida outcome, the country in shock. The country was already entering a recession and the dotcom stocks had already dropped big time.

This to me just seems like a major correction of a way overextended stock market, and not a reflection of the economy. Even though it is now a bear, the stock market run up so far and so fast, really since 2013, this just mostly seems like give back.

Yeah - but fortunately most of my cap gains distributions were paid out at the beginning of the month ahead of a large chunk of this down draft and I take them in cash. Now I'm rebalancing and repurchasing equities.