Earl E Retyre
Full time employment: Posting here.
- Joined
- Jan 1, 2010
- Messages
- 541
I have a few questions related to Wellesley and Capital Gains Taxes. I may be totally confused and appreciate your help ….
I believe Vanguard just announced that the 2018 estimated Vanguard capital gains taxes for the admiral Wellesley Fund will be 3.95% this year. This will affect my 2018 taxable income and potentially my eligibility for ACA in the future.
Here are my questions:
(1) I have $256k in Wellesley VWIAX in my taxable account which I believe will produce $10,100 in capital gains this year which will be taxed as ordinary income. Is that correct?
I am OK with this for 2018, but if I had a similar event in 2019, then I would not be eligible for ACA next year (which would cost me about $1k per month). So, I am thinking of selling VWIAX in my taxable account and buying it in my non-taxable account.
(2) If I sell all of my VWIAX, I think I would pay NO capital gains taxes on the sale since my total Adjusted Gross Income is less that $77,400 and all of the VWIAX I purchased has been longer than 1 year so it is all long term capital gains. Is that true? I live in Texas if that matters.
(3) If so, when should I sell VWIAX? I think the distribution occurs on 12/19. So, if I sell it on 12/20 then I believe I will receive the $10k capital gain this year which I would not want to miss. Then assuming (2) is correct, I would pay no taxes on the sale. And next year, I would not be impacted since I would no longer own VWIAX in my taxable account. All true?
Thanks for your help.
Earl
I believe Vanguard just announced that the 2018 estimated Vanguard capital gains taxes for the admiral Wellesley Fund will be 3.95% this year. This will affect my 2018 taxable income and potentially my eligibility for ACA in the future.
Here are my questions:
(1) I have $256k in Wellesley VWIAX in my taxable account which I believe will produce $10,100 in capital gains this year which will be taxed as ordinary income. Is that correct?
I am OK with this for 2018, but if I had a similar event in 2019, then I would not be eligible for ACA next year (which would cost me about $1k per month). So, I am thinking of selling VWIAX in my taxable account and buying it in my non-taxable account.
(2) If I sell all of my VWIAX, I think I would pay NO capital gains taxes on the sale since my total Adjusted Gross Income is less that $77,400 and all of the VWIAX I purchased has been longer than 1 year so it is all long term capital gains. Is that true? I live in Texas if that matters.
(3) If so, when should I sell VWIAX? I think the distribution occurs on 12/19. So, if I sell it on 12/20 then I believe I will receive the $10k capital gain this year which I would not want to miss. Then assuming (2) is correct, I would pay no taxes on the sale. And next year, I would not be impacted since I would no longer own VWIAX in my taxable account. All true?
Thanks for your help.
Earl