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Learning, Sharing, and Teaching => Investor Alley => Topic started by: OriolesFan89 on January 22, 2015, 07:26:18 AM

Title: Tax Loss Harvesting
Post by: OriolesFan89 on January 22, 2015, 07:26:18 AM
I have ~$100k in a Vanguard taxable account with a too many funds in it for my liking. Rather than owning specific indexes for Pacific, Developed Markets, Emerging, etc., I'm going to go the route of owning Vanguard Total Int'l Stock Index Fund (VTIAX). Simplification! I have domestic covered in my retirement accounts.

I currently have a $650 short term loss in a Vanguard Pacific Stock Index Fund (VPADX). If I sell this and buy VTIAX, I will realize this small $650 loss and this will be deducted from my short term capital gains in 2015, right? I don't plan on having any short term gains but I wouldn't mind selling an individual stock I have done well in that's still short term. If I don't have any short term gains in 2015, this $650 loss would be deducted from my long term gains (which will exceed $650), right?

If there's any other info needed for this question, please let me know! I appreciate the help.
Title: Re: Tax Loss Harvesting
Post by: seattlecyclone on January 22, 2015, 08:29:28 AM
Yes, short term losses cancel out short term gains first. If there's still a loss left over, they cancel out long term gains next. After that if you still have losses you can deduct them from your other income (up to a $3,000/year limit). If there's still a loss left over you can carry it over to offset gains in future years.