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Vanguard taxable account - TLH

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  • Basil05
    replied
    For those who haven't seen, PoF just posted a step-by-step guide oh tax loss harvesting here. I can't wait to read this carefully...Thanks PoF!

     

    https://www.physicianonfire.com/tax-loss-harvesting-vanguard/

    Leave a comment:


  • childay
    replied




    You could do large cap + extended market (or large/mid/small).  Or just large cap if you want to KIS.
    Click to expand...


    What he said.

    Or what I said earlier in thread:

    https://www.bogleheads.org/wiki/Approximating_total_stock_market

    You are correct to avoid the S&P500 fund if you otherwise are buying.

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  • Phoenixdown99
    replied
    Yes VLCAX is large cap

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  • Lithium
    replied
    You could do large cap + extended market (or large/mid/small).  Or just large cap if you want to KIS.

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  • Phoenixdown99
    replied
    Can I sell VTSAX-> VLCAX and TLH the $3000?

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  • Phoenixdown99
    replied
    Is there an alternative to S&P 500 if I have the vanguard total stock market fund as I am always buying S&P 500 in my fidelity retirement accounts and I want to prevent a wash sale

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  • Phoenixdown99
    replied
    If my account went down by $3000, is that the loss?

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  • Basil05
    replied
    If anyone has seen a step-by-step guide for beginners on how to tax loss harvest, I'd love to read it. I'm in the process of switching my cost basis summary at Vanguard to SpecID so that I can see the gains/losses of each lot. My taxable account is small and I don't anticipate to see the kinds of losses that would make TLH worthwhile, but I'd love to start learning in case opportunities arise in the future

    Thanks!

    Leave a comment:


  • BurnedoutDoc
    replied
    I was all excited to do my first TLH yesterday and then realized it was only $400 of "losses"

    I feel like that is not worth the hassle of turning off dividend reinvesting, turning it back on eventually, calling Vanguard to figure out how the heck to pick certain lots of stock to sell, remembering to change funds after 30 days, etc.

    But thanks for the links for some light reading, hopefully I will be ready when the big one hits.  Or never? That would also work.

    Leave a comment:


  • Tabaxus
    replied
    Also make sure you haven't had any purchases of the same stock in your retirement accounts within the look-back period (and that you don't within the look-forward period).  That's a gigantic and miserable trap waiting to catch people.

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  • Hatton
    replied
    You need to read about tax harvesting partners. Vtsax and s&p 500.  Vtiax and vfwax.  If you have a meaningful loss you sell it get the deduction and buy the partner so you are never really out of the market.  Use individual share ID.  You keep the diversification but get the deduction.

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  • Tabaxus
    replied




    Make sure you have held the shares for greater than 30 days to avoid “wash sale” disqualification.
    Click to expand...


    You don't need to have held the actual shares you are harvesting for 30 days--you just need to make sure you don't have any other shares that you've purchased within the 30-day period.  Shares can't have a wash sale with themselves.

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  • VagabondMD
    replied
    Make sure you have held the shares for greater than 30 days to avoid “wash sale” disqualification.

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  • Tabaxus
    replied




    My Vanguard Total Stock Market taxable account says I lost – $1,746.89 since I opened it in January (put in 45K, its now around 43K).

    Can I do TLH to save the $1,746.89 on taxes now? If so, can someone point me in the right directions of the steps?

    PS – I just put 10K into the same account, which is pending.

    Thanks!
    Click to expand...


    Just to make sure, did you only do one single deposit in January?  If you did multiple deposits within the lookback period, you can't TLH until you're outside of the lookback period for all of the purchases.  Lame rule.  Prevents me from TLHing on my January deposits, which is quite annoying.

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  • childay
    replied


    And staying out of the index fund for 31 days?
    Click to expand...


    You swap it to S&P as noted above.  Or you could approximate TSM with S&P fund and extended market, which would be exactly like the TSM fund.

    https://www.bogleheads.org/wiki/Approximating_total_stock_market

     

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