TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
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TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
New to tax loss harvesting. I've got some losses in VFIAX that my wife and I could harvest.
I'm in Vanguard. I exchange VFIAX for VTSAX. I don't buy VFIAX again for awhile to keep safe from wash sale. I use transaction info (Vanguard sends it to me I hope) for form 8949. That carries over to form D and then to front page of 1040.
I don't do paper tax forms anymore, just simple online with Tax Slayer.
I've got a few VFIAX transactions to choose from .... should I worry about short-term or long-term for the capital loss?
Is there anything else I'm missing?
Thanks for help!
I'm in Vanguard. I exchange VFIAX for VTSAX. I don't buy VFIAX again for awhile to keep safe from wash sale. I use transaction info (Vanguard sends it to me I hope) for form 8949. That carries over to form D and then to front page of 1040.
I don't do paper tax forms anymore, just simple online with Tax Slayer.
I've got a few VFIAX transactions to choose from .... should I worry about short-term or long-term for the capital loss?
Is there anything else I'm missing?
Thanks for help!
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
I find taxes and tax returns simple. Maybe you do as well?
The 1099-B that Vanguard sends you should be enough to fill out the forms of your tax return.
The 1099-B that Vanguard sends you should be enough to fill out the forms of your tax return.
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
1099b is very easy with tax software. I like OLT.com , free for fed, 9.95 for state
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
Do you have VTSAX or VFIAX in any of your or your wife's other accounts? Do you reinvest dividends of VTSAX or VFIAX in your taxable account?captmccrae wrote: ↑Thu Sep 29, 2022 10:58 pm I'm in Vanguard. I exchange VFIAX for VTSAX. I don't buy VFIAX again for awhile to keep safe from wash sale. I use transaction info (Vanguard sends it to me I hope) for form 8949. That carries over to form D and then to front page of 1040.
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
Yes, VTSAX in wife's Roth and my Roth. But I'm harvesting VFIAX. Thought that's what mattered for wash rules, the fund you're moving out of. I don't have VFIAX anywhere elserkhusky wrote: ↑Fri Sep 30, 2022 8:22 amDo you have VTSAX or VFIAX in any of your or your wife's other accounts? Do you reinvest dividends of VTSAX or VFIAX in your taxable account?captmccrae wrote: ↑Thu Sep 29, 2022 10:58 pm I'm in Vanguard. I exchange VFIAX for VTSAX. I don't buy VFIAX again for awhile to keep safe from wash sale. I use transaction info (Vanguard sends it to me I hope) for form 8949. That carries over to form D and then to front page of 1040.
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
As a general rule, it's easier to TLH if you don't hold the same fund in taxable as you have in other accounts. If the market is really volatile and you want to be able to TLH "on the way down" without having to think about what's in your other accounts, it's easy enough to use different funds in taxable. For example, you could use VFIAX and VLCAX as TLH partners. If you're comfortable using ETFs, more options become available (e.g., ITOT, SCHB).captmccrae wrote: ↑Fri Sep 30, 2022 8:59 amYes, VTSAX in wife's Roth and my Roth. But I'm harvesting VFIAX. Thought that's what mattered for wash rules, the fund you're moving out of. I don't have VFIAX anywhere elserkhusky wrote: ↑Fri Sep 30, 2022 8:22 amDo you have VTSAX or VFIAX in any of your or your wife's other accounts? Do you reinvest dividends of VTSAX or VFIAX in your taxable account?captmccrae wrote: ↑Thu Sep 29, 2022 10:58 pm I'm in Vanguard. I exchange VFIAX for VTSAX. I don't buy VFIAX again for awhile to keep safe from wash sale. I use transaction info (Vanguard sends it to me I hope) for form 8949. That carries over to form D and then to front page of 1040.
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
the tax forms your brokerage gives you every year to report your sales are the same forms whether its gains or losses.
so if you already know how to import those forms in your tax software and how gains appear on your taxes then there is nothing extra you need to do when you are recording losses.
as long as you haven't got yourself into a rare or overcomplicated situation.
so if you already know how to import those forms in your tax software and how gains appear on your taxes then there is nothing extra you need to do when you are recording losses.
as long as you haven't got yourself into a rare or overcomplicated situation.
60-20-20 us-intl-bond
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
Thanks, that makes sense.As a general rule, it's easier to TLH if you don't hold the same fund in taxable as you have in other accounts. If the market is really volatile and you want to be able to TLH "on the way down" without having to think about what's in your other accounts, it's easy enough to use different funds in taxable.
What if I'm not a super-savvy or active investor, and just want to do this once? Harvesting VFIAX and parking it in VTSAX is ok even if we hold VTSAX elsewhere, right?
I'm comfortable with and have no problem holding VTSAX forever.
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
Have never sold/exchanged in our taxable accounts before. Just have bought and held. Then bought some more. Etc etc. Figured I'd get real fancy and maybe TLH nowcchrissyy wrote: ↑Fri Sep 30, 2022 9:31 am the tax forms your brokerage gives you every year to report your sales are the same forms whether its gains or losses.
so if you already know how to import those forms in your tax software and how gains appear on your taxes then there is nothing extra you need to do when you are recording losses.
as long as you haven't got yourself into a rare or overcomplicated situation.
So I've never used/gotten tax forms with sales before. Figure it's not rocket science, but just double-checking
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
Yes, that’s fine.captmccrae wrote: ↑Fri Sep 30, 2022 9:34 amThanks, that makes sense.As a general rule, it's easier to TLH if you don't hold the same fund in taxable as you have in other accounts. If the market is really volatile and you want to be able to TLH "on the way down" without having to think about what's in your other accounts, it's easy enough to use different funds in taxable.
What if I'm not a super-savvy or active investor, and just want to do this once? Harvesting VFIAX and parking it in VTSAX is ok even if we hold VTSAX elsewhere, right?
I'm comfortable with and have no problem holding VTSAX forever.
BUT- we’ve all seen this before. If VTSAX drops enough, you’ll be back here asking how to TLH without creating wash sales with the other accounts. That gets more complicated and it’s easy to avoid by TLH to something besides VTSAX.
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
VLCAX (Large Cap Index) is a good option.lazynovice wrote: ↑Fri Sep 30, 2022 9:46 amYes, that’s fine.captmccrae wrote: ↑Fri Sep 30, 2022 9:34 amThanks, that makes sense.As a general rule, it's easier to TLH if you don't hold the same fund in taxable as you have in other accounts. If the market is really volatile and you want to be able to TLH "on the way down" without having to think about what's in your other accounts, it's easy enough to use different funds in taxable.
What if I'm not a super-savvy or active investor, and just want to do this once? Harvesting VFIAX and parking it in VTSAX is ok even if we hold VTSAX elsewhere, right?
I'm comfortable with and have no problem holding VTSAX forever.
BUT- we’ve all seen this before. If VTSAX drops enough, you’ll be back here asking how to TLH without creating wash sales with the other accounts. That gets more complicated and it’s easy to avoid by TLH to something besides VTSAX.
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
I don’t know about Tax Slayer but some tax prep software packages (such as TurboTax (TT)) allow you to import the brokerage Form 1099-B. The data import into TT of Vanguard’s Form 1099-B has accurately populated Form 8949 and Schedule D.
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
But do you or your wife have a 500 Index fund anywhere else? Some employer plans have a 500 Index option that isn't specifically titled "500 Index".
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
I knew I missed some stuff. Yes, we actually do. As state employee, we have NC 401's and 457's. Big part of our allocation is in Large Cap Index Fund.
Write-up says:
The North Carolina Large Cap Index Fund (the “Fund”) is offered exclusively for participants in the
NC 401(k) and NC 457 Plans. Effective 01/01/2016, the Fund is held in a group trust and you own
units of the group trust. The Fund invests in the Equity Index Fund F collective investment trust
(“C.I.T.”) managed by BlackRock which attempts to replicate the composition and performance of
the S&P 500 Index.
So dangit! Sure looks like that's same as VFIAX and we could be in wash sale situation. Doggone it!
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
You could switch all the NC Large Cap to something else.captmccrae wrote: ↑Fri Sep 30, 2022 5:33 pm So dangit! Sure looks like that's same as VFIAX and we could be in wash sale situation. Doggone it!
Or put a temporary hold on purchasing new shares.
Or accept the wash sale if the number of shares being washed is small compared to the number being TLH'd. (You would likely need to compute the ratio of VFIAX/Large Cap to determine the equivalent shares).
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Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
This has come full-circle. I thought I was good to go, some folks commented saying "we've seen this all before" and well of course here I am.rkhusky wrote: ↑Fri Sep 30, 2022 6:33 pmYou could switch all the NC Large Cap to something else.captmccrae wrote: ↑Fri Sep 30, 2022 5:33 pm So dangit! Sure looks like that's same as VFIAX and we could be in wash sale situation. Doggone it!
Or put a temporary hold on purchasing new shares.
Or accept the wash sale if the number of shares being washed is small compared to the number being TLH'd. (You would likely need to compute the ratio of VFIAX/Large Cap to determine the equivalent shares).
After some searching it seems there's no true consensus about substantially identical. NC Large Cap (which is Blackrock Equity Fund F) and VFIAX (Vanguard 500) follow same benchmark but likely have some very minor differences. Tough to tell because I can't find exact details about Equity Fund F.
I could make some temporary changes to our 401 and 457, swapping out NC Large Cap for a few months for something else. I think that'd work.
Absolutely thankful for your help folks!
Re: TLH Tax Form Qs .... Simple Enough for Guy Who Does His Own Taxes?
Well, if you search on here you will find there is no consensus that 401k, 403b, 457, etc employer retirement accounts are included in wash sales. I'm on the side they are not included but there are tons of threads and posts on here.