Tax loss harvesting

[single2019]

as far as I know it does apply across accounts... taxable and tax-deferred... stupid but that's the way I recall it works.

Question: have any of you with taxable and tax advantaged accounts with the same brokerage seen wash sale being flagged?

I see that in my taxable account when I have erred

 

[Montecfo]

Question: have any of you with taxable and tax advantaged accounts with the same brokerage seen wash sale being flagged?



I see that in my taxable account when I have erred

I have not. Ever. But I think there is a private letter ruling to the effect that it does apply across taxable and IRA accounts controlled by the same tax payer.

I do not think brokerages are required to flag is across accounts. But I try to follow the law.

 

[calmloki]

Just checked and VTI held in another account she is joint on was all purchased back in 2020, so not running foul of the wash sale rule should be pretty easy in our case.

 

[Looking4Ward]

I'm looking at doing this as well, but I'm wondering what fund would be as close to Vanguard Wellington as possible without violating the wash rule?

 

[Sunset]

I'm looking at doing this as well, but I'm wondering what fund would be as close to Vanguard Wellington as possible without violating the wash rule?

I would buy VTI and BND if you want to replicate Wellington for a while, these are ETF's. Then after 31 days sell them and buy back the Wellington if you really like it.

Personally I'd just buy the VTI and skip the BND, as with the Fed raising rates still, BND will struggle to rise at all and may continue it's decline as it's been doing for the year.
CD's or I-bond would be better (IMHO) than BND for the next 6 months minimum.

 

[gayl]

Tax loss harvested yesterday & today. Wiped out gains, have 3k overall loss, and 100k+ to put back in. Will park in ST CD for a month then rebuy

 

[RetiredAt49]

Tax loss harvested yesterday & today. Wiped out gains, have 3k overall loss, and 100k+ to put back in. Will park in ST CD for a month then rebuy

Staying out of the market could be costly… or brilliant [emoji3]

There was a study performed by my former wealth management company that there has only been about a dozen days in 37 years that had you been out of the market completely - that would have reduced your total portfolio by 50% (if someone had pulled everything out over those dozen days - they were not sequential either if I recall) so I’m keeping my money in the market. I’ll see if I can dig that study up and post a link to it…

 

[gayl]

Staying out of the market could be costly… or brilliant [emoji3]

There was a study performed by my former wealth management company that there has only been about a dozen days in 37 years that had you been out of the market completely - that would have reduced your total portfolio by 50% (if someone had pulled everything out over those dozen days - they were not sequential either if I recall) so I’m keeping my money in the market. I’ll see if I can dig that study up and post a link to it…

Generally yes. But this one had major issues. 86% still in SCHB, 2% in individual stocks, 2% CDs, 10% cash (for now).

 

[big-papa]

Three times so far.
1. Earlier in the summer I TLH'd all lots of my primary fund that had short term losses and bought the TLH Partner
2. A couple of months or so ago, I TLH'd some of the lots from the TLH Partner that were under water and used the proceeds to purchase my primary fund
3. Yesterday I sold the remaining lots of the TLH partner as all were under water and purchased my primary fund.

Generally I have a threshold of at least $3K in short term losses before I TLH - matches the loss carryover for income.

Automatic reinvestment has been turned off for a while.

I have a little spreadsheet that keeps track of all activities including calculating possible dates before I start looking for the next TLH opportunity.

Cheers.

 

[gayl]

Staying out of the market could be costly… or brilliant [emoji3]

There was a study performed by my former wealth management company that there has only been about a dozen days in 37 years that had you been out of the market completely - that would have reduced your total portfolio by 50% (if someone had pulled everything out over those dozen days - they were not sequential either if I recall) so I’m keeping my money in the market. I’ll see if I can dig that study up and post a link to it…

Generally yes. But this one had major issues. 86% still in SCHB, 2% in individual stocks, 2% CDs, 10% cash (for now).

Umm umm. Glad I did. CCL is even lower today. Knew it had issues. Now staying in CDs at 3% for 1 month or dipping my toes into bonds. Figure 12% in bonds / CDs / treasuries / cash might be the sweet spot

 

[RockyMtn]

Interested in anyone's take on this situation. I've got some short term losses for this year. I have no short term gains for the year. Should I go ahead and take all the short term losses and use them to offset some long term gains or just wait and whittle the carryover loss $3k a year or against future short term losses?

 

[COcheesehead]

Interested in anyone's take on this situation. I've got some short term losses for this year. I have no short term gains for the year. Should I go ahead and take all the short term losses and use them to offset some long term gains or just wait and whittle the carryover loss $3k a year or against future short term losses?

The short term term losses will help to offset long term gains if you have any. If not, you can at least reduce current income by $3000 and if you still have losses, they will carry over.

 

[RockyMtn]

The short term term losses will help to offset long term gains if you have any. If not, you can at least reduce current income by $3000 and if you still have losses, they will carry over.

yes but aren't they more valuable offsetting higher taxed st gains than lower taxed LT gains?

 

[sroby2020]

I did the TLH a couple of years ago and I am still working on the excess. So, I won't do it this year. My current concentration is doing the Roth conversions from my IRA accounts.

 

[COcheesehead]

yes but aren't they more valuable offsetting higher taxed st gains than lower taxed LT gains?

It depends on the individual situation. You didn’t give much info about the rest of your taxation. I love it when people ask an ambiguous question, then complain about the answer.

 

[RockyMtn]

It depends on the individual situation. You didn’t give much info about the rest of your taxation. I love it when people ask an ambiguous question, then complain about the answer.

Sorry for being ambiguous, and I did not complain about the answer. I'm in 32% tax bracket. Hope that helps. If not thanks for your time.

 

[Sunset]

Sorry for being ambiguous, and I did not complain about the answer. I'm in 32% tax bracket. Hope that helps. If not thanks for your time.

Then offsetting no gains, ie $3,000 of regular income is very valuable to you, more than offsetting LTG's by a wide margin.

 

[copyright1997reloaded]

Sorry for being ambiguous, and I did not complain about the answer. I'm in 32% tax bracket. Hope that helps. If not thanks for your time.

Yes, better to no offset STL with LTG.

However, remember to not let the tail wag the dog. I had LTG in 2000 that I didn't want to take because they would have offset (and more) some STL I had.

Well, by the next year, those LTG were much less, because those equities fell (quite a bit) as the market tanked.

I will confess that this is an area of weakness that I have in terms of my ability to properly manage my investments. Even this year I have securities w/LTG that I might have sold more of earlier this year, but didn't because I have some STL's....and those securities are considerably lower than they were earlier this year when I was considering it.

 

[TB1960]

We will THL our SWTSX mutual fund and replace it with SWPPX. This allows us $48,000 worth of loss to be harvested.