Sorry - a novice here - might be a stupid question. But I am trying to figure out something around the end of year capital gains distribution for funds and what is best to do.
My situation. I am going to get an approx $44K distribution from my Vanguard Wellesley position in my after tax portfolio. (30,000 shares X $1.48 distribution per share) this year. I am in the 39.6% tax bracket for 2015.
I have about $200K in losses I am carrying from the 1999 bubble and a couple of other mistakes I made. Also, as of today, I have a $25K loss in this fund if I sold it today.
I just recently FIRED and am going to completely re-do my entire portfolio which will include selling my position in Wellesley and harvesting the loss.
My Question. Should I sell my position in Wellesley now and avoid the $44K Capital Gains Distribution or is there any benefit to getting the $44K distribution since I have past losses to counter it since I am going to sell my position in Wellesley anyway? I am just trying to avoid any more taxes in 2015 but don't want to be stupid either. Just don't see any advantage in taking that distribution if I can help it.
I believe the answer is to go ahead and sell the Wellesley now and avoid the capital gains distribution if I am going to get out of that fund anyway as part of my FIRE portfolio overhaul where Wellesley isn't going to be in the mix. But wanted to check with all you smart people to help me out with this...
Thanks in advance. I love this board - some brilliant people here that help a lot...
My situation. I am going to get an approx $44K distribution from my Vanguard Wellesley position in my after tax portfolio. (30,000 shares X $1.48 distribution per share) this year. I am in the 39.6% tax bracket for 2015.
I have about $200K in losses I am carrying from the 1999 bubble and a couple of other mistakes I made. Also, as of today, I have a $25K loss in this fund if I sold it today.
I just recently FIRED and am going to completely re-do my entire portfolio which will include selling my position in Wellesley and harvesting the loss.
My Question. Should I sell my position in Wellesley now and avoid the $44K Capital Gains Distribution or is there any benefit to getting the $44K distribution since I have past losses to counter it since I am going to sell my position in Wellesley anyway? I am just trying to avoid any more taxes in 2015 but don't want to be stupid either. Just don't see any advantage in taking that distribution if I can help it.
I believe the answer is to go ahead and sell the Wellesley now and avoid the capital gains distribution if I am going to get out of that fund anyway as part of my FIRE portfolio overhaul where Wellesley isn't going to be in the mix. But wanted to check with all you smart people to help me out with this...
Thanks in advance. I love this board - some brilliant people here that help a lot...