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Learning, Sharing, and Teaching => Investor Alley => Topic started by: bluetick on March 24, 2020, 10:22:47 AM

Title: Tax Loss Harvesting Nubie Questions
Post by: bluetick on March 24, 2020, 10:22:47 AM
Hey All,

This is the first chance I've had to do some tax loss harvesting. Got a few questions. Currently, in my brokerage account I'm holding VTI, VXUS and VCITX ( California Long Term Tax Exempt Muni Bond Fund). In my IRA, Ive got VTSAX with about $1350 in contributions left for 2020.  If I sell VTI in the brokerage and buy S&P 500, but in my IRA just continue buying VTSAX does that count as a wash sale?

Also,  should I bother tax loss harvesting the VCITX? I had planted my mid-range  cash there while I was figuring out what to do with it. 

Up until now my asset allocation was 100% stocks if we pretend the VCITX was just a savings account.
Title: Re: Tax Loss Harvesting Nubie Questions
Post by: MDM on March 24, 2020, 12:10:11 PM
If I sell VTI in the brokerage and buy S&P 500, but in my IRA just continue buying VTSAX does that count as a wash sale?
The IRS could easily maintain that VTSAX and VTI are "substantially identical" and you would be hard pressed to disprove it, so yes that probably would be a wash sale to the extent of the VTSAX IRA purchases.

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Also,  should I bother tax loss harvesting the VCITX? I had planted my mid-range  cash there while I was figuring out what to do with it.
That's up to you.
Title: Re: Tax Loss Harvesting Nubie Questions
Post by: terran on March 24, 2020, 12:49:08 PM
Agreed, I wouldn't feel comfortable buying VTSAX in any account within 30 days (before or after) selling VTI at a loss in a taxable account.