Tax Loss Harvesting Question
Since I’m 58 & have a ACA high deductible health care plan, I have to watch my income closely. The MAGI cliff for 2020 is $49,960.00
An estimate of the remaining dividends to be paid for 2020, shows I should be under the cliff, but only by approximately $1,500.00
*I've already contributed the max of $4,550.00 to my HSA*
To err on the side of caution, I may decide to realize some losses.
I have a substantial amount of those in Kinder Morgan Energy (KMI)
I'm guessing I first purchased shares around 2008.
On December 3rd 2014, the company reorganized. They changed from an MLP, to a C-corp. New shares were assigned to me, & any previous buys, dividend reinvestments, cost basis, etc were erased & my new purchase date was
I haven't had a lot of experience in tax loss harvesting, choosing FIFO, or specific shares to sell, etc, which leads me to my question.
The cost basis for the new shares assigned to me is $40.53
Let's assume I want to realize approximately $1,000.00 in losses & use the FIFO method. Shares closed at $13.03 today, $27.50 lower than 2014. If I understand it right, I could sell 35 of those shares & realize a loss of $962.50
Is this correct ?
Thanks in advance.
"No beast so fierce but knows some touch of pity, but I know none, therefore am no beast"