I've never done tax loss harvesting ("TLH"), and am learning about it now --
I currently have a loss of about $5K, all in VTSAX. If I exchange it for VTIAX or VLCAX (as suggested by the Mad Fientist as a comparable to VTSAX - link below), I think the steps below are what I would want to do -- and anyone, please correct me if I'm doing it wrong:
Mad Fi link on TLH:
http://www.madfientist.com/tax-loss-harvesting/1) Exchange 100% of VTSAX for VLCAX.
2) Do not buy any more VTSAX for at least 30 days.
3) Hold VLCAX (in the amount exchanged in step 1) for 1 year -- so as to benefit from long-term capital gains.
4) After 1 year, if I want, exchange VLCAX back into VTSAX.
Question: If I exchange 100% of VTSAX for VLCAX, can I resume purchasing VTSAX 30 days after the exchange, using new money (i.e. cash purchase)? Would any gains in VTSAX bought with new money have to be offset against the loss I am seeking to harvest? And if so, would it be wiser to halt ALL new money purchases of VTSAX for 1 full year (instead investing in VLCAX)?
Also, I hold a lot of VTTHX (target 2035 retirement fund), which in turn holds a lot of its assets in VTSMX (investor class of VTSAX). Is that going to prevent me from doing TLH of VTSAX in my taxable account?