I have a lot of carry-forward losses that can be used to cancel out capital gains.
I have a relatively large amount in my taxable money-market fund that is targeted to be kept as cash or invested in bonds or bond funds, but is intended to be a long-term holding.
I notice that the money-market fund was giving about 5% taxable dividend, while some stock funds in my IRA were giving only about 1%. The stock funds were giving pretty large capital gain distributions.
I figure that it would be better if I swap the stock funds out of the IRA into the taxable account and keep the equivalent amount in the IRA as money-market or bond funds. That would reduce the amount of currently taxable non-qualified dividends.
Although I may be getting a taxable capital gain distribution next year (I waited until this year's distribution before moving), I will be able to cancel it out with my carry-forward losses.
In addition, since the stock funds have run up quite a bit, I would expect them to go down for a while. It would seem that this would give me the opportunity to do some tax-loss harvesting at some point in the future since the new purchases in my taxable account will be at today's price.
Does this seem like a good idea?
Also, would there be any reason I should try to do some sort of selling of appreciated stocks followed by a quick buy-back in my taxable account so I could effectively eliminate my accrued capital gains by cancelling with my carry-forward losses?
It would seem to me that there is no benefit to doing this. If the long-term capital gains rate goes back up, then the carry-forward losses might seem more valuable. The only thing I can think of would be if the government takes away the previous carry-forward losses, but that seems unlikely.
I have a relatively large amount in my taxable money-market fund that is targeted to be kept as cash or invested in bonds or bond funds, but is intended to be a long-term holding.
I notice that the money-market fund was giving about 5% taxable dividend, while some stock funds in my IRA were giving only about 1%. The stock funds were giving pretty large capital gain distributions.
I figure that it would be better if I swap the stock funds out of the IRA into the taxable account and keep the equivalent amount in the IRA as money-market or bond funds. That would reduce the amount of currently taxable non-qualified dividends.
Although I may be getting a taxable capital gain distribution next year (I waited until this year's distribution before moving), I will be able to cancel it out with my carry-forward losses.
In addition, since the stock funds have run up quite a bit, I would expect them to go down for a while. It would seem that this would give me the opportunity to do some tax-loss harvesting at some point in the future since the new purchases in my taxable account will be at today's price.
Does this seem like a good idea?
Also, would there be any reason I should try to do some sort of selling of appreciated stocks followed by a quick buy-back in my taxable account so I could effectively eliminate my accrued capital gains by cancelling with my carry-forward losses?
It would seem to me that there is no benefit to doing this. If the long-term capital gains rate goes back up, then the carry-forward losses might seem more valuable. The only thing I can think of would be if the government takes away the previous carry-forward losses, but that seems unlikely.