Author Topic: Tax Loss Harvesting and selling  (Read 1081 times)

George

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Tax Loss Harvesting and selling
« on: November 14, 2015, 09:52:04 AM »
I have no income except for $25,000 in Social Security. In 9/18/15 I bought VTSAX for $49.57, on 9/29/15 I sold VTSAX for $47.19  and bought VFIAX for $173.81 and harvested around $19,000 of loses, a few weeks ago VFIAX had gone up to where I now had $19,000 in gains if I had sold it. I did not sell it because I was goin to wait a year so that it would be long term capital gain, but on the other hand I did have the $20,000 of loses that would of made it a wash and I would not have to pay any taxes. Now my account in VFIAX is down about $10,000.
Having trouble executing this harvesting tecknics, Should I have sold it and bought another fund ?
What would of been the best move then and now ?

Thanks in advance.

SilentC

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Re: Tax Loss Harvesting and selling
« Reply #1 on: November 15, 2015, 08:09:16 PM »
George, I wouldn't worry about gain harvesting, if you keep good records you can carry forward capital losses as an individual for several years, and offset $3k/ur of ordinary income with capital losses.  Also I'm not as familiar with the new capital gains tax law changes but it looks like if you are in the 15% tax bracket these days you pay 0% taxes in long term capital gains, link attached.  I've been meaning to do more research on carry forwards, I will update this if I find out anything new this week.  http://www.schwab.com/public/schwab/nn/articles/Taxes-Whats-New

George

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Re: Tax Loss Harvesting and selling
« Reply #2 on: December 13, 2015, 01:04:22 PM »
I have no income except for $25,000 in Social Security. In 9/18/15 I bought VTSAX for $49.57, on 9/29/15 I sold VTSAX for $47.19  and bought VFIAX for $173.81 and harvested around $19,000 of loses, a few weeks ago VFIAX had gone up to where I now had $19,000 in gains if I had sold it. I did not sell it because I was goin to wait a year so that it would be long term capital gain, but on the other hand I did have the $20,000 of loses that would of made it a wash and I would not have to pay any taxes. Now my account in VFIAX is down about $10,000.
Having trouble executing this harvesting tecknics, Should I have sold it and bought another fund ?
What would of been the best move then and now ?

Thanks in advance.

Is there anyone more familiar with what my best move should of been even do is down now I'm still up for the year ?