Retireby45ish
Recycles dryer sheets
- Joined
- Dec 8, 2018
- Messages
- 209
I’ve searched a few of these threads but couldn’t find a specific answer to my question…
I own FXNAX (fidelity us bond index fund). I’m sitting on about 7k losses on it. ~95% are long term so I wanted to sell them to offset some gains this year. Im still working so In a high tax bracket and will have lots of long and short term gains to offset (due to some investment). A few of the div reinvestments are short term losses since they are less than a year.
I have never done tax harvesting but was thinking, if I understand correctly, that I could sell this at a loss and buy BND (vanguard total bond etf) on the next day*.
Would this be considered a wash sale? I was thinking since one is Fido and another vanguard, and one a fund and one an etf, that they wouldn’t be so similar as to create an issue. But I wanted to double check with the collective wisdom of those on the forum…
1. Is this a valid tax harvest?
2. Is it a wash sale?
3. Should I just leave the trivial amt left there until it becomes long term? Or does it not matter since it’s also all a loss at this point and I will have some short term gains to offset?
4. Is the default fifo tax lots?
*I have enough cash in account where I don’t need to wait for the settlement of one to buy the other.
Thanks!
I own FXNAX (fidelity us bond index fund). I’m sitting on about 7k losses on it. ~95% are long term so I wanted to sell them to offset some gains this year. Im still working so In a high tax bracket and will have lots of long and short term gains to offset (due to some investment). A few of the div reinvestments are short term losses since they are less than a year.
I have never done tax harvesting but was thinking, if I understand correctly, that I could sell this at a loss and buy BND (vanguard total bond etf) on the next day*.
Would this be considered a wash sale? I was thinking since one is Fido and another vanguard, and one a fund and one an etf, that they wouldn’t be so similar as to create an issue. But I wanted to double check with the collective wisdom of those on the forum…
1. Is this a valid tax harvest?
2. Is it a wash sale?
3. Should I just leave the trivial amt left there until it becomes long term? Or does it not matter since it’s also all a loss at this point and I will have some short term gains to offset?
4. Is the default fifo tax lots?
*I have enough cash in account where I don’t need to wait for the settlement of one to buy the other.
Thanks!