Author Topic: Multiple accounts, tax loss and wash sale?  (Read 166 times)

degrom7

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Multiple accounts, tax loss and wash sale?
« on: December 23, 2018, 08:49:15 PM »
Since the market has been down for the past few months, I was considering tax loss harvesting. Below is what I hold and my plan to avoid a wash sale.
1) Vanguard Brokerage –
10/16/18 - Purchased $6,000 worth of VTSMX.
11/26/18 -  Converted to VTSAX
12/21/18 - Automatic reinvestment of $30.21 dividend (should’ve kept it as manual)
Market Value Now: $5,246.49           
Short Term Capital Loss: $783.72
Plan – Sell entire balance and purchase VLCAX. Wait 31 days and sell/repurchase VTSAX. (My 457 already invest in large cap which follows the S&P 500 so not sure if this prevents me from purchasing VLCAX.)

2) Wealthfront Brokerage –
9/5/18 – Deposited $500
9/13/18 – Deposited $4,000
9/14/18 – Deposited $500
Total Deposited = $5,000
Current Balance = $4,408.94

Currently Invested in VTI (recently purchased on 12/17), ITOT, SCHB, VEA, IXUS, SCHF, VWO, IEMG, SCHE, VIG, DVY, SCHD, VTEB, TFI, MUB. Purchasing VTI is what bothers me.
Wealthfront states I tax loss harvested $367.70 so far, but they don’t know I have VTSAX.
Plan – I’m worried about a wash sale here since Wealthfront purchased VTI a few days ago. Can I even go forward selling my Wealthfront balance and VTSAX in my Vanguard account? I know I can’t purchase VTSAX if I liquidate this account because I’ll be selling VTSAX in the Vanguard account above. I’m considering selling this account and waiting after the wash sale period of 30 days before and after. Is this a good idea? How much additional tax loss harvesting would I get by liquidating this entire account?

3) Robinhood Brokerage – (Would love to get rid of this account for index funds)
Sept/Oct – Invested $12,000 in individual stocks – many tech stocks
Current Balance: $8,450.69
Dividends that haven’t been reinvested: $24.33
Short Term Capital Loss: $12,000 - $8,450.69 = $3,549.31 (Does not include dividend)
Plan – Sell entire balance of $8,450.69 and put that money to my January IRA contribution ($12k for wife/myself). I know I can’t buy VTSAX, but should I go 100% VLCAX for my IRA and then wait a month to sell/buy VTSAX?

Note: My 457 and my wife’s 401k which tracks the S&P 500, S&P 400 MidCap, S&P SmallCap 600 and Russell 2000. Our IRAs are all in VTSAX.

This will be my first time tax loss harvesting. Appreciate any feedback and advice, especially to the Wealthfront account.