Author Topic: VTSAX Tax Loss Harvesting  (Read 1620 times)

smallstache

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VTSAX Tax Loss Harvesting
« on: December 22, 2018, 04:08:20 AM »
Any ideas for Vanguard funds to swap into for the purpose of harvesting losses in VTSAX? I was thinking a 50/50 mix of VIGAX and VVIAX. This would be a 31-day holding and then back to VTSAX.

Born2Run

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Re: VTSAX Tax Loss Harvesting
« Reply #1 on: December 22, 2018, 05:46:23 AM »
VLCAX = Large-Cap Index Fund (Admiral)
This is the fund I see most often recommended as a tax loss partner for VTSAX.
Performance has been very similar.

degrom7

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Re: VTSAX Tax Loss Harvesting
« Reply #2 on: December 22, 2018, 05:51:50 AM »
What about buying VTSAX after selling VTI and Schwab Dividend Equity ETF in my Wealthfront account?


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terran

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Re: VTSAX Tax Loss Harvesting
« Reply #3 on: December 22, 2018, 06:18:59 AM »
What about buying VTSAX after selling VTI and Schwab Dividend Equity ETF in my Wealthfront account?


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I would not buy VTSAX within 30 days of selling VTI at a loss. Some would disagree, but I think most people would say that two investments that follow the same index are substantially identical.

The transactions being at different brokerages means that the brokerage won't flag it as a wash sale, but it's still a wash sale.

Indexer

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Re: VTSAX Tax Loss Harvesting
« Reply #4 on: December 22, 2018, 08:20:39 AM »
What about buying VTSAX after selling VTI and Schwab Dividend Equity ETF in my Wealthfront account?


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I would not buy VTSAX within 30 days of selling VTI at a loss. Some would disagree, but I think most people would say that two investments that follow the same index are substantially identical.

The transactions being at different brokerages means that the brokerage won't flag it as a wash sale, but it's still a wash sale.

I second this advice. VTSAX and VTI don't just track the same index. Vanguard's ETFs are a share class of their index funds, so VTI and VTSAX are the same fund. It's as substantially identical as you are likely to get.


50/50 mix of VIGAX and VVIAX should work, as should using VLCAX.

Greatoutdoors

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Re: VTSAX Tax Loss Harvesting
« Reply #5 on: December 25, 2018, 08:09:35 PM »
I've been thinking about the same thing and currently have holdings in both VTSAX and S&P500.

I assume, given there's ~80% overlap between these index that, I could trade one for the other immediately and avoid a wash sale?

MustacheAndaHalf

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Re: VTSAX Tax Loss Harvesting
« Reply #6 on: December 26, 2018, 09:04:14 AM »
Technically, Schwab US Broad Market (SCHB) lacks about ~1000 stocks that are found in VTSAX / VTI.  So in terms of not being "substantially identical", the points in favor are different brand names (Schwab vs Vanguard), different assets (~2500 vs ~3700 stocks), and different indices (DJ vs CSRP).  You could also use the Russell 1000 (the 1000 largest stocks).
« Last Edit: December 26, 2018, 09:05:53 AM by MustacheAndaHalf »

Aggie1999

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Re: VTSAX Tax Loss Harvesting
« Reply #7 on: December 26, 2018, 02:04:18 PM »
I'm TLH'ing VTSAX into VLCAX. Portfolio Visualizer difference is $31,224 (VTSAX) vs $31,203 (VLCAX) from a $10k investment in Jan 2005. Not worth trying to simulate VTSAX into two funds. Also, don't seem any real reason to switch back to VTSAX unless more TLH opportunities arise.
« Last Edit: December 26, 2018, 02:05:58 PM by Aggie1999 »

Spitfire

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Re: VTSAX Tax Loss Harvesting
« Reply #8 on: December 27, 2018, 08:37:19 AM »
I just exchanged for VFIAX, not the exact same but the S&P 500 covers most of the total stock market. Planning to switch back in a month.