Friendly reminder to consider harvesting losses if you manage your own taxable brokerage account. Most people do this in December but it can be done any time. Hopefully markets will be up by the end of the year but if not you can do it again then.

I'm a buy and hold/DCA person and unfortunately most of the lots purchased in the last few months were down 10% so this morning I sold the recent lots for STCL and purchased similar ETFs (different enough to not trigger wash sales).

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Just did yesterday. Great reminder. Only downside is I had a simple 2 funds in my brokerage account and now I have 3 and maybe 4 in a few weeks.

Great advice. And doing it more often is often better. This is one reason to choose some of those robo options that do this automatically (I think Betterment or Wealthfront might be best?)

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PLEASE MAKE SURE YOU UNDERSTAND WASH LOSSES.

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Just to nit pick the guidance is substantially identical and not just the same. I would think you would have a hard time justifying under audit that SPY and VOO are not a wash sale. You are probably not likely to get audited for wash sales though. And the period is 30 days before and after, if anyone cares.

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Does this mean selling just enough of your current losses to cover your expected gains from dividends for the year?

I’m also a buy and hold type person, but so much so that I don’t like to realize losses in the hopes they become gains eventually. Is this not a good strategy?

Last December I didn't have notable losses on any lots in my taxable account so I didn't sell anything. I had plenty of ST unrealized losses as of earlier this week so I'm taking them while I can. It fully offsets the small ST gains I took in January plus will offset gains going forward or my ordinary income. In an ideal world I'll have gains across most lots by December and if not I can harvest more losses then.

Not recommending everyone harvest losses, but if you are going to do it you might as well do it while your investments are down 10% instead of possibly not being able to do it.

Additionally, to those saying it is a zero sum game not necessarily. If you hold long term and have a down year of income (between jobs, grad school, sabbatical, early retirement) you may be in the 0% LTCG rate (up to 81k MFJ) or at worst 15%. You can also gift those low basis/highly appreciated stocks to charity instead of cash donations.

In the long run, the tax man gets his pound of flesh.

Yes but if you use the capital losses against ordinary income, you can get some permanent benefit.

Is there a point to selling if you don’t have any gains/are not planning to sell stocks that are doing well?

No.

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Can I sell VTI on loss and buy VOO for tax harvesting?

I certainly think they are different enough that they would not be a wash sale. Others may have a different opinion. My taxable account is mostly IVV now because I tax loss harvested ITOT in 2020 and have gains in it now. Those are the ishares versions of VOO and VTI.

Do you do tax loss harvesting for non-taxable accounts (Roth, HSA, 401k?)

The real benefit is to have more losses for tax than gains so you can offset higher taxed ordinary income. But to answer your original question, you can’t harvest losses in tax advantaged accounts.

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Can someone explain like I’m five? Can I just sell all my VOO, claim the losses, and then buy VTI instead since it’s at a low price? Is that the idea?

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