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Mined some lose yesterday
Old 03-24-2020, 09:15 AM   #1
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Mined some lose yesterday

Not a timer but noticed a long held foreign etf was showing a nice (sic) lose.

Found a very similar etf and within a minute (plus for eft vs mut fund) I made the swap.

Now have a near lifetime of 3000/year deductions.
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Old 03-24-2020, 09:48 AM   #2
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Originally Posted by ducky911 View Post
Not a timer but noticed a long held foreign etf was showing a nice (sic) lose.

Found a very similar etf and within a minute (plus for eft vs mut fund) I made the swap.

Now have a near lifetime of 3000/year deductions.

Remember the losses go against any capital gains first before deducting the $3k from ordinary income. This includes dividends.


Someone correct me if I am wrong.
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Old 03-24-2020, 09:50 AM   #3
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Remember the losses go against any capital gains first before deducting the $3k from ordinary income. This includes dividends.


Someone correct me if I am wrong.
Capital loses offset capital gains only. After that, up to $3k of losses offset income, including dividends.
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Old 03-24-2020, 09:59 AM   #4
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Remember the losses go against any capital gains first before deducting the $3k from ordinary income. This includes dividends.


Someone correct me if I am wrong.
That’s correct.

I’ve also been harvesting losses and buying the same category of index fund with the proceeds.

But I expect my losses to be used up by other capital gains such as long term cap gains distributions from mutual funds - possibly this year, certainly over the next year or two. Most of our income is long term cap gains tax treatment.

I also had some realized capital gains from rebalancing in Jan. Those are now cancelled out and I still have a loss.
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Old 03-24-2020, 01:38 PM   #5
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Capital loses offset capital gains only. After that, up to $3k of losses offset income, including dividends.

I think we are probably saying the same thing. The capital loss from TLH would go against qualified dividends first, then normal income, which includes non-qualified dividends. Correct?
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Old 03-24-2020, 02:30 PM   #6
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I think we are probably saying the same thing. The capital loss from TLH would go against qualified dividends first, then normal income, which includes non-qualified dividends. Correct?
The capital loss goes against other CGs first (sch D). If there is more, it can be used up to 3K a yr to offset ordinary income. It is never used directly against qualified dividends which is a good thing since that preserves the tax benefits of being qualified. (CG/QDIV wksht).
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Old 03-24-2020, 02:35 PM   #7
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I thought I had a lifetime of losses in the last downturn, but I ate them all up. Just took a larger amount of losses. Perhaps this set will last longer, though it also allows me to take some free cap gains if I need to.
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Old 03-24-2020, 02:40 PM   #8
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Thatís correct.

.................................................. ........

But I expect my losses to be used up by other capital gains such as long term cap gains distributions from mutual funds - possibly this year, certainly over the next year or two. Most of our income is long term cap gains tax treatment.

..........................................
One of the joys of TLH this time around is that I managed to get rid of 3 actively managed funds which liked to spit out large CG distribtions most yrs.....one from an index fund even. I even got rid of 1 such fund even tho it was at a (small) gain instead of a loss so I wouldn't be hounded by it any more.
Hopefully my TLH will last a little longer.
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Old 03-25-2020, 07:30 AM   #9
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I'm still using the $3000 deductions from 2008 losses. I wish I could use them to offset dividends but unfortunately not.
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Old 03-25-2020, 08:10 AM   #10
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The capital loss goes against other CGs first (sch D). If there is more, it can be used up to 3K a yr to offset ordinary income. It is never used directly against qualified dividends which is a good thing since that preserves the tax benefits of being qualified. (CG/QDIV wksht).

Thanks for the clarification. You are right. I guess I just assumed any long term capital loss would have to go against qualified dividends first before ordinary income, as that would be the most advantageous for the govt. I stand corrected.
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Old 03-25-2020, 08:56 AM   #11
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After reading this thread I checked to see if I could do any tax loss harvesting. But I've been invested for so long in my after tax bucket that I still don't have any losses. VTI would have to go down another 40% from here before I could do that.

Now my individual stocks are all over the place. But most that show losses are the ones I bought recently. And they're all in my Roth, so it wouldn't do any good. I do have a few individual stocks in after tax, but they're things like Cisco (cost basis $7), Brk.B (cost basis $55), and such. LTBH tends to remove the loss aspect after a couple of decades.
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Old 03-25-2020, 10:17 AM   #12
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I desperately need to rebalance and restructure my portfolio (for many life reasons I ignored doing this for the past three years, and now need to get rid of things I inherited three years ago). Harvesting loses right now would be good. But I don't have my new portfolio strategy (simplify holdings, make it more tax efficient) worked out yet.

Any reason -- other than wild market swings -- that I should NOT harvest now (like today or tomorrow), and hold in cash for a few days until I firm up my AA and simplified portfolio structure?
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Old 03-25-2020, 10:21 AM   #13
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I thought you could only do $3,000 a year loss for 8 years?
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Old 03-25-2020, 11:07 AM   #14
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I desperately need to rebalance and restructure my portfolio (for many life reasons I ignored doing this for the past three years, and now need to get rid of things I inherited three years ago). Harvesting loses right now would be good. But I don't have my new portfolio strategy (simplify holdings, make it more tax efficient) worked out yet.

Any reason -- other than wild market swings -- that I should NOT harvest now (like today or tomorrow), and hold in cash for a few days until I firm up my AA and simplified portfolio structure?
There is the danger that you sell today, and the market rises a few thousand points in a couple of days (10%).

This is actually where I am with a small sale yesterday, of $30K worth, purely a gamble that it would drop today, instead it's up ~5%
So in effect I've missed out on a $1,500 gain today on that $30K of stock.

For less risk, you could simply figure out what you want to invest in, then sell and invest in the same hour. I would caution that funds are difficult to do this with as they only trade at the end of the day.
That is why I stick with ETF's and some stocks and only have a rare fund or two.
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Old 03-25-2020, 02:46 PM   #15
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There is the danger that you sell today, and the market rises a few thousand points in a couple of days (10%).

.................................................. .....
good point. exactly what happened to me. Sold 2 funds Monday and had funds ACHed to broker. Took 2 days which is reasonably fast but in meantime market was up 10%. Easier if you stay where funds are and just do an exchange which happens simultaneously but I wanted to get rid of some actively managed funds. Only other thing I can think of.......if you have the cash available, send it to broker so you can buy the same day you sell to avoid the 2 day delay. Didn't think of that until later.
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