Author Topic: Tax Loss Harvesting Fail!  (Read 931 times)

FindingFI

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Tax Loss Harvesting Fail!
« on: March 27, 2017, 10:13:17 AM »
I just learned about tax loss harvesting and was holding some VTIAX in a taxable account at a loss.  In an effort to put my newfound knowledge to work, I sold VTIAX on 3/3 at a loss of $1,065.90.  In my excitement for taking the first step, I forgot to turn off re-investing dividends.  So I log in today to see how things are going, and discover that I got a dividend on 3/23 of $15.62 of VTIAX, triggering a wash sale. Never been so bummed about a dividend before!

What I'm trying to figure out now is what the actual consequences of this wash sale are.  Because of the dividend, am I no longer allowed to deduct any of the $1065.90 loss?



Aggie1999

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Re: Tax Loss Harvesting Fail!
« Reply #1 on: March 27, 2017, 10:17:08 AM »
Not an expert but I think it just means you can't deduct the $15.62.

FindingFI

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Re: Tax Loss Harvesting Fail!
« Reply #2 on: March 27, 2017, 11:33:44 AM »
Thank you L.A.S.

The accounting in my investment account makes a lot more sense with your explanation, and fortunately the taxable account is the only place I have similar holdings so, at least this time around, I don't have to worry about IRAs and wash sales.  I thought I knew what I was doing before, and now I know a little bit more. ;)