Hello everyone,
I have been indexing for a while but havent paid attention to portfolio allocation. Its now coming back to bite me.
I'm considering shuffle my portfolio allocation according to Principles of tax-efficient fund placement in the wiki. I'm wondering if there is a way for defer the capital gain when I transfer from taxable to sheltered account?
Thanks
Defer capital gain when moving bond from taxable to IRA
Re: Defer capital gain when moving bond from taxable to IRA
Sorry, no.
But you can donate appreciated securities without paying the tax.
But you can donate appreciated securities without paying the tax.
Re: Defer capital gain when moving bond from taxable to IRA
...that is, to charity.bnes wrote:Sorry, no.
But you can donate appreciated securities without paying the tax.
Bruce
absit iniuria verbis
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Re: Defer capital gain when moving bond from taxable to IRA
Are you selling a bond fund in a taxable account? If you've been reinvesting dividends in your bond fund, you may find that your cost basis is higher than you think. Your brokerage account should have a display of cost basis for each holding in your taxable account.
Cost basis = purchases + reinvested dividends/cap gain distributions.
There may be little or no capital gain even if your bond fund position is worth more than your purchase amounts.
Cost basis = purchases + reinvested dividends/cap gain distributions.
There may be little or no capital gain even if your bond fund position is worth more than your purchase amounts.
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Re: Defer capital gain when moving bond from taxable to IRA
Just to clarify contributions to an IRA must be in cash although transfers or rollovers can be of assets however there is no transfer/rollover possible from taxable to a tax advantaged account.
Re: Defer capital gain when moving bond from taxable to IRA
For example, Vanguard will let you move $5500 from Fund X in taxable to Fund X in an IRA, but this is still treated as a sale and purchase for tax purposes. (And don't do this if you have a capital loss in the shares you sell of Fund X; buy a different fund instead, or you won't be able to deduct the loss because of the wash sale rules.)placeholder wrote:Just to clarify contributions to an IRA must be in cash although transfers or rollovers can be of assets however there is no transfer/rollover possible from taxable to a tax advantaged account.