Golden sunsets
Thinks s/he gets paid by the post
- Joined
- Jun 3, 2013
- Messages
- 2,524
Question to those in the know: Is holding VNQ in a taxable brokerage fund smart, dumb or neutral?
I started 2020 by buying some VNQ in our taxable brokerage account. We owned some already in our tax advantaged funds, but needed to buy more to rebalance so without giving it a whole lot of thought I bought more in our taxable ac in early January. I then came to the conclusion that holding it in taxable would create ordinary income, as opposed to qualified, so I sold it in the second quarter. Fast forward to reviewing our 2020 1099 for that account and low and behold, practically none of the divy was ordinary or qualified(less than 1%). The divy was either ROC or 199A, 20% of which is a QBI deduction. Seeing that I don't plan to sell any of the stock we own in our taxable, wouldn't holding VNQ in a taxable account make sense? Am I missing anything?
I started 2020 by buying some VNQ in our taxable brokerage account. We owned some already in our tax advantaged funds, but needed to buy more to rebalance so without giving it a whole lot of thought I bought more in our taxable ac in early January. I then came to the conclusion that holding it in taxable would create ordinary income, as opposed to qualified, so I sold it in the second quarter. Fast forward to reviewing our 2020 1099 for that account and low and behold, practically none of the divy was ordinary or qualified(less than 1%). The divy was either ROC or 199A, 20% of which is a QBI deduction. Seeing that I don't plan to sell any of the stock we own in our taxable, wouldn't holding VNQ in a taxable account make sense? Am I missing anything?