Sold Bond Funds at a loss of $ 9000, what now ?

[COcheesehead]

Our plan is to invest in non-dividend generating assets, then use the gains over time to offset with large loss carryforward, so there are ways to "get more" out of it than just $3k per year.

People misunderstand the $3000 credit against ordinary income. You will use as much as you have to offset any gains, no cap, only the excess will produce up to the $3000 credit per year.

 

[madatrub]

People misunderstand the $3000 credit against ordinary income. You will use as much as you have to offset any gains, no cap, only the excess will produce up to the $3000 credit per year.

Yep, we have a 6 figure carryforward. Been down this road lol.

Its just a question of whether I'll ever pay income tax on capital gains again in my lifetime.

 

[COcheesehead]

Yep, we have a 6 figure carryforward. Been down this road lol.

Its just a question of whether I'll ever pay income tax on capital gains again in my lifetime.

I had six figures from 2008. It offset a ton, but I used it all up in 8 years. Selling a business will do that.

 

[madatrub]

I had six figures from 2008. It offset a ton, but I used it all up in 8 years. Selling a business will do that.

Ya we have a rental property that will take a chunk out, but still going to take some good gains to offset everything.

 

[COcheesehead]

Ya we have a rental property that will take a chunk out, but still going to take some good gains to offset everything.

And the beauty is you probably are really out nothing.

 

[rkser]

I am not worried about possible wash sale in our recent bond sale losses of VBIRX & VWIUX in taxable accounts as I am not in a hurry to buy a Bond ETF.

In my opinion, right now cash is the best position to be in with high 4% return in the Fixed Income. Although I have never seen this high a cash balance in our accounts.

I have got nothing but a bloody face to show with above Bond Funds in taxable & BND in tax deferred, & they are not done raising the Fed rates yet. I was late in getting out of our Bond Funds when the writing was on the wall.

We just have VTI, VXUS & the rest in money markets & CDs.
Buy & hold, withdraw from Taxable for living expenses, & Roth conversions from Tax Deferred.

 

[lurker84]

I'm in a similar situation and wondering about the wash sale rule.

Does selling a TIPS fund and buying individual TIPS or treasuries count as a wash sale? I have plenty of gains to offset (options in a taxable account), so I was planning to make some sales. However I image I'd want to buy some bonds with the proceeds immediately...

 

[Phroig]

I'm in a similar situation and wondering about the wash sale rule.

Does selling a TIPS fund and buying individual TIPS or treasuries count as a wash sale? I have plenty of gains to offset (options in a taxable account), so I was planning to make some sales. However I image I'd want to buy some bonds with the proceeds immediately...

No.

 

[dmpi]

I too carried a six figure 2008 loss until 2018. Not only do you get to claim 3,000/year but it actually helps you mentally because you can sell gains and not worry about capital gains for that year. Finally when WA state announced they were going to institute a capital gain tax I preemptively sold off a huge amount of my winners and finally zeroed out my capital loss.

 

[pb4uski]

No.

+1, not substantially identical.

 

[Montecfo]

Substantially identical is a very high bar!

 

[Route246]

Thanks. That was my question, too.

I'm in a similar situation and wondering about the wash sale rule.

Does selling a TIPS fund and buying individual TIPS or treasuries count as a wash sale? I have plenty of gains to offset (options in a taxable account), so I was planning to make some sales. However I image I'd want to buy some bonds with the proceeds immediately...

No.