Earl E Retyre
Full time employment: Posting here.
- Joined
- Jan 1, 2010
- Messages
- 541
I want to make sure I do not screw this up. So, figured I would validate my plan with all you helpful people! Thanks in advance.
I have $35k in losses in my taxable account that is invested in VTI (Total Stock Market) that I want to capture so that I can offset future gains. Here is my plan:
(1) Sell all of VTI in my taxable account which would capture the $35k loss
(2) I do not want to change my overall stock allocation and assume that when I sell, the proceeds are not immediately available to reinvest. But I have the equivalent cash available in my nontaxable account, so, in that account I will purchase the equivalent $ in VOO (S&P 500).
a. Prior to doing this, since I also have VTI in my non-taxable account, I need to set this account to “do not reinvest dividends” to avoid a wash sale. Is this true and necessary? If I do not do this, is the wash sale limited to the amount of my dividends as opposed to the entire amount?
(3) Once my proceeds are available in my taxable account from the sale of VTI, if I wanted to, I could always purchase VOO in taxable and sell the VOO from my nontaxable account to get back to the same allocation in taxable vs nontaxable accounts.
(4) I plan to sell a real estate property next year which would will have capital gains. Assuming I have no gains this year, I believe I can take $3k of the capital losses this year from my taxes and carry over the remaining $32k losses to next year. Then, when I sell the property, I can offset $32k of the capital gains.
Hopefully, that all makes sense. Any issues with any steps in this plan or my understanding?
I have $35k in losses in my taxable account that is invested in VTI (Total Stock Market) that I want to capture so that I can offset future gains. Here is my plan:
(1) Sell all of VTI in my taxable account which would capture the $35k loss
(2) I do not want to change my overall stock allocation and assume that when I sell, the proceeds are not immediately available to reinvest. But I have the equivalent cash available in my nontaxable account, so, in that account I will purchase the equivalent $ in VOO (S&P 500).
a. Prior to doing this, since I also have VTI in my non-taxable account, I need to set this account to “do not reinvest dividends” to avoid a wash sale. Is this true and necessary? If I do not do this, is the wash sale limited to the amount of my dividends as opposed to the entire amount?
(3) Once my proceeds are available in my taxable account from the sale of VTI, if I wanted to, I could always purchase VOO in taxable and sell the VOO from my nontaxable account to get back to the same allocation in taxable vs nontaxable accounts.
(4) I plan to sell a real estate property next year which would will have capital gains. Assuming I have no gains this year, I believe I can take $3k of the capital losses this year from my taxes and carry over the remaining $32k losses to next year. Then, when I sell the property, I can offset $32k of the capital gains.
Hopefully, that all makes sense. Any issues with any steps in this plan or my understanding?