Search found 306 matches

by bobsmith
Fri Dec 23, 2016 6:20 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Re: Understanding AMT

kanohe, Threshold? Just me mixing up terms again. I meant "AMT exemption amount". I think I now know enough to be dangerous. I'm a ways off from being able to take advantage of this, if ever, but when I time comes I'll check with a good tax CPA. http://www.savingtoinvest.com/alternative-mi...
by bobsmith
Thu Dec 22, 2016 8:21 am
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Re: Understanding AMT

Qualified dividends and long-term capital gains. The marginal rate on these is 15% for most investors paying regular tax, but 22% in the phase-out range under the AMT, and 15% outside the phase-out. Thanks for giving me an idea of what triggers the AMT. To be clear, with regards to my example, I wo...
by bobsmith
Thu Dec 22, 2016 8:19 am
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Re: Understanding AMT

Qualified dividends and long-term capital gains. The marginal rate on these is 15% for most investors paying regular tax, but 22% in the phase-out range under the AMT, and 15% outside the phase-out. Thanks for giving me an idea of what triggers the AMT. To be clear, with regards to my example, I wo...
by bobsmith
Thu Dec 22, 2016 8:07 am
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Re: Understanding AMT

kaneohe,

You're "nitpicks" are dead on and I appreciate the correction.
by bobsmith
Wed Dec 21, 2016 12:53 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Re: Understanding AMT

You might pay AMT if you have a lot of income which is ignored by federal tax but is taxed under the AMT, such as incentive stock options or AMT-taxable municipal bonds. I'm a passive investor so pretty much everything is invested in index stocks and the bonds are inside retirement accounts. I'm no...
by bobsmith
Wed Dec 21, 2016 12:44 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Re: Understanding AMT

Thanks everyone for the links, advice, and information. Very helpful as I'm come to expect from bogleheads. Although the kind of data I plugged into Tax Caster never showed me paying any AMT, it does appear Tax Caster provides a field showing AMT, so I was wrong to assume it didn't calculate AMT. I'...
by bobsmith
Wed Dec 21, 2016 11:31 am
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Re: Understanding AMT

kaneohe, I don't see an option for "View full report", but when I do turbo tax just above the taxes owed in big red numbers, there's a caption, "Estimated Amount Owed". There's a carrot next to it (^) that, when I click it, gives me the information you describe. Thanks, that was ...
by bobsmith
Tue Dec 20, 2016 12:26 pm
Forum: Personal Finance (Not Investing)
Topic: Understanding AMT
Replies: 19
Views: 2289

Understanding AMT

I'm trying to understand Alternative Minimum Tax. First, if there's an online calculator somewhere, please let me know. I'm aware of the online free version of Tax Caster, but either I'm wrong on some variable, or it doesn't know how to recognize and process the AMT. For 2016, say I'm married, filin...
by bobsmith
Fri Jun 24, 2016 4:22 pm
Forum: Investing - Theory, News & General
Topic: [Vanguard Total International] ETF currently down 7.09% - Time to sell?
Replies: 39
Views: 4577

Re: Vang TIn'tSMI ETF currently down 7.09%

Is looking at Vanguard Total International Stock ETF price movement near close good prediction of the price movement equivalent mutual fund will get? Yes. VTIAX hasn't posted yet, but it should be pretty close to the 7.74 the ETF closed at for the day. https://personal.vanguard.com/us/funds/snapsho...
by bobsmith
Thu Mar 10, 2016 9:48 am
Forum: Investing - Theory, News & General
Topic: Warren Buffet & Ted Seidas Bet: Passive vs Active Trading
Replies: 35
Views: 3423

Index vs. Hedgefund? <--- Warren Buffet Places Bet

[Thread merged into here, see below. --admin LadyGeek] Eight years ago, Warren Buffett made a $1 million bet with some hedge fund managers. We learn what the bet tells us about one of the most important questions in investing. http://www.npr.org/2016/03/10/469897691/armed-with-an-index-fund-warren-...
by bobsmith
Fri Feb 19, 2016 8:49 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard unexpected Wash Sale
Replies: 9
Views: 1230

Re: Vanguard unexpected Wash Sale

The Fund was a Vanguard mutual fund held with them since 2005. I've never used anything except average cost basis. Currently Vanguard records what's left of this fund as containing only covered shares with no short term gain or loss but with a large unrealized long term loss. If I were to sell the ...
by bobsmith
Fri Feb 19, 2016 8:46 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard unexpected Wash Sale
Replies: 9
Views: 1230

Re: Vanguard unexpected Wash Sale

To be clear I should wait to sell the remainder of the fund because otherwise it will create another wash sale, right? Nope, I think if you sell ALL remaining shares that there will be no wash sale and the previously disallowed loss will be applied to the cost basis. After all, if you sell all shar...
by bobsmith
Thu Feb 18, 2016 6:19 pm
Forum: Investing - Help with Personal Investments
Topic: Vanguard unexpected Wash Sale
Replies: 9
Views: 1230

Re: Vanguard unexpected Wash Sale

I agree with you about specified share method, but when I sell the remainder of this fund I see no reason not to use cost average. I also see no reason to not use Average Basis with the remainder of this fund. In fact, you probably cannot legally switch it anyways. But that's what I wrote in my pre...
by bobsmith
Thu Feb 18, 2016 11:13 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard unexpected Wash Sale
Replies: 9
Views: 1230

Re: Vanguard unexpected Wash Sale

I suspect you did not use Specific Identification for the cost basis method. And that is probably because you could not. You can sell all the remaining shares now without waiting 31 days since the last purchase. For any new funds in taxable,I suggest that you make sure the cost basis method is SPec...
by bobsmith
Thu Feb 18, 2016 10:21 am
Forum: Investing - Help with Personal Investments
Topic: Vanguard unexpected Wash Sale
Replies: 9
Views: 1230

Vanguard unexpected Wash Sale

I just wanted to relay my experience with a Vanguard exchange which created an unexpected wash sale do to uncovered shares. I'll keep it hypothetical and in numbers whole. I owned Vanguard Mutual Fund ABC since 2005. The Fund ABC was always held with Vanguard and I only ever used the average cost ba...
by bobsmith
Thu Feb 18, 2016 8:26 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

Hi, I just want to say thanks to everyone one last time for all the advice and links and information. Bogleheads is always a great resource to me.

Thanks to everyone for their help!
:happy
by bobsmith
Mon Feb 15, 2016 3:32 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

powermega wrote:I don't believe you can make a wash sale with a 401k. You can with your IRAs though.


Yes, the more I read about this, there does seem to be some debate on 401ks.
by bobsmith
Mon Feb 15, 2016 3:17 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

Thanks everyone. I think I understand this better. Taking it out of the hypothetical and into the real world, despite some ignorance I think I avoided a wash sale with one exception. Even though I only use mutual funds and have always used average cost basis method, I think House Blend is right abou...
by bobsmith
Mon Feb 15, 2016 1:34 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

My answer is yes and you need to make sure there are no purchases in the 8 accounts 30 days before the sale. Thanks very much for the information. So inside all my retirements account I would need to create new and different mutual funds just for the purpose of having somewhere for the the dividend...
by bobsmith
Mon Feb 15, 2016 1:13 pm
Forum: Investing - Help with Personal Investments
Topic: Advocating Passive Investment Strategy
Replies: 4
Views: 794

Re: Advocating Passive Investment Strategy

I'm a big believer in buying and holding for the long term using a passive investment strategy. However, for many it does seem counter intuitive to suggest you shouldn't try to "beat" the market. ... How many many is the many you speak of? We can't all be above average, and in the financi...
by bobsmith
Mon Feb 15, 2016 12:44 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Wash Sale question

[Thread merged into here, see below. --admin LadyGeek] Say I have a taxable account held jointly with my wife. Say we each have a 401k, a traditional IRA, and a Roth IRA, and 457 for a total of 9 accounts. Say each account hold a mutual fund called Fund ABC Say I sell that fund in my taxable accoun...
by bobsmith
Mon Feb 15, 2016 11:14 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

Few more questions for clarity: I have a taxable account and I sell Fund ABC and generate a realized loss. I purchase Fund ABC inside my IRA account within 30 days. I've been told this is a wash sale. I have a taxable account and I sell Fund ABC and generate a realized loss. Within 30 days, a contri...
by bobsmith
Mon Feb 15, 2016 10:52 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

For #2. In this case, I'm talking about a fund that has long term gain of 500 and short term loss of 100, but average cost basis method is used and the entire fund is sold, then repurchased two weeks later. This cannot happen. If you are using average cost basis, then all of the shares you own have...
by bobsmith
Mon Feb 15, 2016 10:13 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

What if I sell ABC Fund out of a taxable account with Vanguard, generating a loss, but then 2 weeks later purchased the same fund inside a tax sheltered IRA account I had with Vanguard? Still a wash sale Wow, I believe you but it sure surprises me. I wouldn't have thought wash sales had anything to...
by bobsmith
Mon Feb 15, 2016 9:31 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

What if I sell ABC Fund out of a taxable account with Vanguard, generating a loss, but then 2 weeks later purchased the same fund inside a tax sheltered IRA account I had with Vanguard? Still a wash sale Wow, I believe you but it sure surprises me. I wouldn't have thought wash sales had anything to...
by bobsmith
Mon Feb 15, 2016 9:25 am
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

For #2. In this case, I'm talking about a fund that has long term gain of 500 and short term loss of 100, but average cost basis method is used and the entire fund is sold, then repurchased two weeks later. This cannot happen. If you are using average cost basis, then all of the shares you own have...
by bobsmith
Sun Feb 14, 2016 2:56 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

For #2. In this case, I'm talking about a fund that has long term gain of 500 and short term loss of 100, but average cost basis method is used and the entire fund is sold, then repurchased two weeks later. In other words, when figuring out if it's a wash sale does the IRS consider short and long t...
by bobsmith
Sun Feb 14, 2016 2:47 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

#3. I was talking about selling the fund entirely, but you make a good point. So anytime I sell mutual fund shares at a loss, dividends reinvested may trigger a wash sale in the eyes of the IRS? I hadn't considered this. When this does happen or when any wash sale happens, is this calculated for an...
by bobsmith
Sun Feb 14, 2016 1:40 pm
Forum: Investing - Help with Personal Investments
Topic: Noob uncovered shares question
Replies: 10
Views: 625

Re: Noob uncovered shares question

Vanguard keeps a record of your cost basis. When doing your tax return,non covered,covered shares are itemized as such on your 1099-B. When doing your taxes with software instructions are explicit as to how to enter your sales. FYI The difference between covered and non covered :happy https://olui2...
by bobsmith
Sun Feb 14, 2016 1:36 pm
Forum: Investing - Help with Personal Investments
Topic: Noob uncovered shares question
Replies: 10
Views: 625

Re: Noob uncovered shares question

What happens if you sell stocks then go to the IRS and say you don't know what or when you paid for most of them? Does the IRS assume it's all gain including your initial investment? That is generally their default position. It is then up to you to determine your cost basis from data you do know. F...
by bobsmith
Sun Feb 14, 2016 1:33 pm
Forum: Investing - Help with Personal Investments
Topic: Advocating Passive Investment Strategy
Replies: 4
Views: 794

Advocating Passive Investment Strategy

I'm a big believer in buying and holding for the long term using a passive investment strategy. However, for many it does seem counter intuitive to suggest you shouldn't try to "beat" the market. I'm always on the lookout for good articles and documentaries that help illustrate this point ...
by bobsmith
Sun Feb 14, 2016 1:17 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Re: Wash Sale question

1. Correct. Wash sales only apply to capital losses. You can harvest gains and buy the same stock or fund the next day. 2. not sure I understand this question. Are you saying there are several lots of shares purchased at different times? In that case you can choose to sell only the lot with the cap...
by bobsmith
Sun Feb 14, 2016 1:07 pm
Forum: Investing - Help with Personal Investments
Topic: Noob uncovered shares question
Replies: 10
Views: 625

Re: Noob uncovered shares question

I've looked at some of the IRS info. So I guess the only reasonable choice is to stick with the average cost-basis method and don't put any more money into these funds. Would the same be true for owning individual stocks? Can those be sold with average-cost-basis method prior to 2011 and using spec...
by bobsmith
Sun Feb 14, 2016 12:47 pm
Forum: Investing - Help with Personal Investments
Topic: Wash Sale question
Replies: 29
Views: 1589

Wash Sale question

I'm a little confused about wash sales. I'll list a few questions... 1. (First the obvious) If I sell all shares of a mutual fund generating only short and long term gains, then by back into that same fund a couple weeks later, then a wash sale isn't a factor. Right? 2. What if I sell all shares of ...
by bobsmith
Sun Feb 14, 2016 12:22 pm
Forum: Investing - Help with Personal Investments
Topic: Noob uncovered shares question
Replies: 10
Views: 625

Re: Noob uncovered shares question

I've looked at some of the IRS info. So I guess the only reasonable choice is to stick with the average cost-basis method and don't put any more money into these funds. Would the same be true for owning individual stocks? Can those be sold with average-cost-basis method prior to 2011 and using speci...
by bobsmith
Sat Feb 13, 2016 2:32 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 12
Views: 1160

Re: Question about Vanguard frequent traders and automated investing

livesoft wrote:Thanks for reporting back with your knowledge.


It's the least I can do after all the good information this forum has given me! :happy
by bobsmith
Sat Feb 13, 2016 11:22 am
Forum: Investing - Help with Personal Investments
Topic: Noob question about Reinvesting Dividends
Replies: 4
Views: 609

Re: Noob question about Reinvesting Dividends

Yes, or maybe .. . The act of reinvesting does not create realized capital gains. Those are already created when distributed. On that count the two methods are equal, or more accurately, irrelevant. The maybe comes from the fact that you will be slowly altering the relative amounts invested in the ...
by bobsmith
Sat Feb 13, 2016 11:17 am
Forum: Investing - Help with Personal Investments
Topic: Noob uncovered shares question
Replies: 10
Views: 625

Noob uncovered shares question

Okay, inside a taxable account, I've got a Vanguard mutual fund held in a Vanguard account which I've owned since 2005. I have bought and sold into it a few times both before and after 2011. I have never officially designated a cost basis method but I've always used average-cost basis when selling s...
by bobsmith
Sat Feb 13, 2016 10:55 am
Forum: Investing - Help with Personal Investments
Topic: Noob question about Reinvesting Dividends
Replies: 4
Views: 609

Noob question about Reinvesting Dividends

Say I've got two index funds in a taxable account. To start, say I have them each set to reinvest dividends and capital gains. Call this method #1. Fund A Fund B Now let's say I set Fund B to reinvest it's dividends and capital gains into Fund A instead of back into itself. Call this Method #2. In t...
by bobsmith
Sat Feb 13, 2016 10:49 am
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 12
Views: 1160

Re: Question about Vanguard frequent traders and automated investing

For anyone still following this thread, I was able to access my account using my wife's login with vanguard. Here's what I can report with regards to using Automatic transfer to thwart the freq trading policy. Yes, you can do exchanges as opposed to only doing transfers or sales. Yes, you can schedu...
by bobsmith
Thu Feb 11, 2016 10:32 am
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 12
Views: 1160

Re: Question about Vanguard frequent traders and automated investing

Why didn't you just ask Vanguard to change the cost basis method on the fund as-is? Doing so isn't a taxable event. I think the worst case is that any uncovered shares are assigned the current average cost going forward. All new funds would be SpecID. I just wanted to keep things simple and not hav...
by bobsmith
Thu Feb 11, 2016 10:12 am
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 12
Views: 1160

Re: Question about Vanguard frequent traders and automated investing

It is rare for someone wanting to buy back a fund they just sold. Most here are buy and hold investors. Some tax loss harvest but ETFs are better for that and buying back within 30 days creates wash sales which would make tax loss harvesting pointless anyway. I'm not sure if you saw my post precedi...
by bobsmith
Thu Feb 11, 2016 9:35 am
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 12
Views: 1160

Re: Question about Vanguard frequent traders and automated investing

I'm surprised this issue hasn't come up before here the forums. Surly I can't be the first person to try to use automatic transfers to get around the freq trader policy? https://www.bogleheads.org/wiki/Frequent_trading_policy Set up a "one-shot" automatic purchase or exchange. "this r...
by bobsmith
Thu Feb 11, 2016 8:28 am
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 12
Views: 1160

Re: Question about Vanguard frequent traders and automated investing

I actually have my vanguard internet access turned off and would need to have them turn it back on before I can try this out. I realize there are tax consequences to realizing these gains. It's a big reason why I want to do it now incase the market bounces back in a month. I'm open to explaining my ...
by bobsmith
Wed Feb 10, 2016 7:15 pm
Forum: Investing - Help with Personal Investments
Topic: Question about Vanguard frequent traders and automated investing
Replies: 12
Views: 1160

Question about Vanguard frequent traders and automated investing

Hi, I'm looking for some help and information. I started with four Vanguard Index funds in a taxable account 500 Index Extended Market Index TSMI TIn'tlSMI I recently sold 100% of the TSMI and put it into the TIn'tlSMI, so now I only have three funds. I would now like to sell 100% of the TIn'tlSMI a...
by bobsmith
Tue Oct 27, 2015 3:57 pm
Forum: Investing - Help with Personal Investments
Topic: Quick Vanguard Fund Question
Replies: 2
Views: 350

Re: Quick Vanguard Fund Question

Great. And that's a logical way to check. Thank you.
by bobsmith
Tue Oct 27, 2015 3:21 pm
Forum: Investing - Help with Personal Investments
Topic: Quick Vanguard Fund Question
Replies: 2
Views: 350

Quick Vanguard Fund Question

When I go to Vanguard's website and check the YTD gain, does that gain represent the actual YTD gain AFTER internal fund fees? For example, TSMI: https://personal.vanguard.com/us/funds/snapshot?FundId=0585&FundIntExt=INT#tab=3 0.05% Expense Ratio YTD (10/26/15) is 1.47% https://personal.vanguard...
by bobsmith
Sat Oct 10, 2015 7:37 am
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 1156

Re: Help with Cost Basis Rules

Thanks everyone. I really appreciate the links, advice, and patience.

Have a good one!
:happy
by bobsmith
Fri Oct 09, 2015 5:02 pm
Forum: Investing - Help with Personal Investments
Topic: Help with Cost Basis Rules
Replies: 16
Views: 1156

Re: Help with Cost Basis Rules

Technically you could keep the fund in place and switch the cost basis method for new shares. My concern is that things can go wrong, at which point you have a mess of old and new shares. Purchasing new shares in Vanguard Total Stock Market ETF ("VTI") lets you begin a new cost basis of s...

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