Join Early Retirement Today
Reply
 
Thread Tools Search this Thread Display Modes
Tax Loss Harvesting: Same with ETF's as MF's?
Old 12-20-2022, 08:44 AM   #1
Recycles dryer sheets
MercyMe's Avatar
 
Join Date: May 2022
Posts: 226
Tax Loss Harvesting: Same with ETF's as MF's?

If one were to TLH from one mutual fund to another, the ideal time to do this is selling the held MF before the ex-dividend date and buying the TLH partner after the ex-dividend date.

Is this equally true for tax loss harvesting ETF's?
__________________
FI Date: 12/31/19
RE Date: 2023? OMY? 2024? OMD? 2034?
No kids, no heirs, just charities.
MercyMe is offline   Reply With Quote
Join the #1 Early Retirement and Financial Independence Forum Today - It's Totally Free!

Are you planning to be financially independent as early as possible so you can live life on your own terms? Discuss successful investing strategies, asset allocation models, tax strategies and other related topics in our online forum community. Our members range from young folks just starting their journey to financial independence, military retirees and even multimillionaires. No matter where you fit in you'll find that Early-Retirement.org is a great community to join. Best of all it's totally FREE!

You are currently viewing our boards as a guest so you have limited access to our community. Please take the time to register and you will gain a lot of great new features including; the ability to participate in discussions, network with our members, see fewer ads, upload photographs, create a retirement blog, send private messages and so much, much more!

Old 12-20-2022, 09:01 AM   #2
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,512
Yes it is the same as Capital gains/losses are handled the same way. If the mutual funds in question are throwing off dividends, then the timing should be also related the the dates needed to make the dividends qualified.

From Fidelity:

All of the following requirements must be met:

"The fund must have held the security unhedged for at least 61 days out of the 121-day period that began 60 days before the securityís ex-dividend date. (The ex-dividend date is the date after the dividend has been paid and processed and any new buyers would be eligible for future dividends.)

For certain preferred stock, the security must be held for 91 days out of the 181-day period, beginning 90 days before the ex-dividend date. The amount received by the fund from that dividend-generating security must have been subsequently distributed to you.

You must have held the applicable share of the fund for at least 61 days out of the 121-day period that began 60 days before the fundís ex-dividend date."
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 12-20-2022, 09:23 AM   #3
Recycles dryer sheets
MercyMe's Avatar
 
Join Date: May 2022
Posts: 226
Quote:
Originally Posted by VanWinkle View Post
Yes it is the same as Capital gains/losses are handled the same way. If the mutual funds in question are throwing off dividends, then the timing should be also related the the dates needed to make the dividends qualified.

From Fidelity:

All of the following requirements must be met:

"The fund must have held the security unhedged for at least 61 days out of the 121-day period that began 60 days before the securityís ex-dividend date. (The ex-dividend date is the date after the dividend has been paid and processed and any new buyers would be eligible for future dividends.)

For certain preferred stock, the security must be held for 91 days out of the 181-day period, beginning 90 days before the ex-dividend date. The amount received by the fund from that dividend-generating security must have been subsequently distributed to you.

You must have held the applicable share of the fund for at least 61 days out of the 121-day period that began 60 days before the fundís ex-dividend date."
I've seen that on Fido's website but honestly I need a caveman version of it to know what it means. I'm just not that bright these days.
__________________
FI Date: 12/31/19
RE Date: 2023? OMY? 2024? OMD? 2034?
No kids, no heirs, just charities.
MercyMe is offline   Reply With Quote
Old 12-20-2022, 09:47 AM   #4
Thinks s/he gets paid by the post
 
Join Date: Jul 2011
Location: Reading, MA
Posts: 1,495
Quote:
Originally Posted by MercyMe View Post
I've seen that on Fido's website but honestly I need a caveman version of it to know what it means. I'm just not that bright these days.
Don't worry about it.
It just relates to what portion of your dividends will be "ordinary" vs "qualified".
Your brokerage will report the proper numbers on your tax form for the year...
TheWizard is offline   Reply With Quote
Old 12-20-2022, 09:47 AM   #5
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,512
Quote:
Originally Posted by MercyMe View Post
I've seen that on Fido's website but honestly I need a caveman version of it to know what it means. I'm just not that bright these days.
It mainly means there are a lot of unqualified dividends being claimed as
qualified every year as they are not distinguished by the brokerage based
on the time owned qualification.

VW
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Old 12-20-2022, 09:50 AM   #6
Thinks s/he gets paid by the post
 
Join Date: Jul 2011
Location: Reading, MA
Posts: 1,495
Quote:
Originally Posted by VanWinkle View Post
It mainly means there are a lot of unqualified dividends being claimed as
qualified every year as they are not distinguished by the brokerage based
on the time owned qualification.

VW
That's fine with me.
Don't tell the IRS...
TheWizard is offline   Reply With Quote
Old 12-20-2022, 09:51 AM   #7
Thinks s/he gets paid by the post
VanWinkle's Avatar
 
Join Date: Oct 2017
Location: Tellico Village
Posts: 2,512
Quote:
Originally Posted by TheWizard View Post
That's fine with me.
Don't tell the IRS...
True be dat!!!
__________________
Retired May 13th(Friday) 2016 at age 61.
VanWinkle is offline   Reply With Quote
Reply


Currently Active Users Viewing This Thread: 1 (0 members and 1 guests)
 
Thread Tools Search this Thread
Search this Thread:

Advanced Search
Display Modes

Posting Rules
You may not post new threads
You may not post replies
You may not post attachments
You may not edit your posts

BB code is On
Smilies are On
[IMG] code is On
HTML code is Off
Trackbacks are Off
Pingbacks are Off
Refbacks are Off


Similar Threads
Thread Thread Starter Forum Replies Last Post
Tax Loss Harvesting Fund/ETF selection Closet_Gamer Active Investing, Market Strategies & Alternative Assets 10 12-23-2018 05:02 PM
Tax loss harvesting: mutual fund cap gain distribution vs loss on individual stock Rambler FIRE and Money 11 12-14-2017 01:08 PM
Quick Tax-Loss Harvesting Question Amethyst FIRE and Money 3 11-11-2009 09:10 AM
Tax loss harvesting & AMT calmloki FIRE and Money 2 06-11-2007 11:39 AM
Tax Loss Harvesting wabmester FIRE and Money 7 10-18-2006 02:43 PM

» Quick Links

 
All times are GMT -6. The time now is 07:07 AM.
 
Powered by vBulletin® Version 3.8.8 Beta 1
Copyright ©2000 - 2023, vBulletin Solutions, Inc.