Sorry if this issue has been explained before, but I was unable to find an answer to my specific question.
Many have discussed that tax loss harvesting is best done by trading between two similar, but not equivalent, assets. For example, in the case of a loss, one could sell Vanguard's S&P 500 mutual fund (VFIAX) and buy the Total Stock Market fund (VTSAX), as the price of these is usually highly correlated.
My question is as follows: I currently own VFIAX shares in a Vanguard taxable account, but I also own VTSAX in a 403b. Would I be able to tax loss harvest the VFIAX and switch to VTSAX in the taxable account even though I already own VTSAX elsewhere? Is there any preparation etc. that I would need to be aware of to make tax loss harvesting an option in the future? Somehow the process is a little intimidating as it seems to open such doors of screwing up.
Thanks!
Many have discussed that tax loss harvesting is best done by trading between two similar, but not equivalent, assets. For example, in the case of a loss, one could sell Vanguard's S&P 500 mutual fund (VFIAX) and buy the Total Stock Market fund (VTSAX), as the price of these is usually highly correlated.
My question is as follows: I currently own VFIAX shares in a Vanguard taxable account, but I also own VTSAX in a 403b. Would I be able to tax loss harvest the VFIAX and switch to VTSAX in the taxable account even though I already own VTSAX elsewhere? Is there any preparation etc. that I would need to be aware of to make tax loss harvesting an option in the future? Somehow the process is a little intimidating as it seems to open such doors of screwing up.
Thanks!
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