I have investments in a Vanguard taxable account and have been adding at least $2000 a month. Every time I add money to a fund, am I restarting the clock for reaching long-term capital gains tax?
I've was doing dual momentum trading in the taxable account before I realized the tax consequences and additionally I've had a change of heart with risk tolerance for the time being and decided to just put all of the money in the taxable account in 80% tax-exempt bonds (50% VCAIX, 50% VTEAX) and the other 20% in VTSAX. This allocation may change if the market corrects or crashes.
Adding to investment funds and capital gains
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BuffMaltese
- Posts: 12
- Joined: Thu Jul 19, 2018 9:30 pm
Re: Adding to investment funds and capital gains
Welcome to the forum!
Each $2000 purchase is its own tax lot with its own capital gains "clock". IF you choose Specific Cost ID, which you should (vs. average cost).
Each $2000 purchase is its own tax lot with its own capital gains "clock". IF you choose Specific Cost ID, which you should (vs. average cost).
Re: Adding to investment funds and capital gains
Vanguard.com will tell you which gains and losses are short-term and which gains and losses are long-term. Please take a look and tell us what you see. Just looking should ease your mind and set you straight.
Even if you have chosen Average Cost, the short and long term shares are still indicated based on their purchase date.
Even if you have chosen Average Cost, the short and long term shares are still indicated based on their purchase date.
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