Hi everyone,
I have a complicated question about tax loss harvesting, and I can't find an answer.
I just realized Vanguard allows me to divide my VTIAX (International Index Fund) into specific lots for the purpose of sale, allowing me to realize as much loss as I want without having to sell a huge amount of stock. This is great.
I'm about to FIRE this week (yay!!!). My income is huge this year and will be very low next year.
My question is this:
Is there an advantage to selling stock so as to realize more than a $3000 loss now?
I haven't sold any stock at all this year, so I have no capital gains to cancel out. I did, however, receive thousands in dividends (mostly qualified dividends).
Can I count any of my loss in VTIAX against these dividends for tax purposes, or is there never much of a point to realizing (harvesting) more than a $3000 loss in a year? Yes, I know you can carry over excess losses to future years, but that shouldn't help since my capital gains tax rate will be zero in retirement.
Thanks in advance everyone!