TLH Wash Sale Scenario - help understand

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sman09
Posts: 207
Joined: Fri Mar 23, 2018 12:02 am

TLH Wash Sale Scenario - help understand

Post by sman09 » Tue Jul 24, 2018 3:01 pm

I would really appreciate some guidance to help me understand consequences of a wash sale scenario in my accounts.

In my Wealthfront account i see the following:
(Tax Loss Harvesting Starting May-30)

SYMBOL TYPE SHARES SHARE PRICE DATE VALUE
SCHF Sell 80 $33.35 07/16/2018 -$2,668.00
VEA Buy 61 $43.20 07/16/2018 $2,635.20

Since i have also had account at Betterment besides have being buying ETFs on my own, i want to clarify on this:

(1) let's say there has been a wash sale scenario (if it turns out that i had bought SCHF within 30 days of Wealthfront selling it) - What is the impact and what exactly do i need to do at tax return filing time?

(2) if suppose i go ahead and close the accounts at Betterment and Wealthfront today, do i incur a loss due to this wash sale (apart from the short-term capital gains tax)? The accounts themselves shows as having appreciated since the time i invested money in them 3 months ago.

(WF says my account has $0 short-term gains and that there has been 0.04% Money-weighted return and $127 TLH and that closing the account would result in $34 in taxes (Short-term gain $79.35)

Betterment says total earnings of $158.97 (1.4% total simple earnings) and that closing the account would result in up to $72 in est taxes (short-term gain-$187, short-term loss $54)

(3) if I turn off TLH and auto-deposit (which i have already done), would it be better to let the accounts continue until 1 year is complete - is there a chance of a wash sale even with auto deposit and TLH turned off?

(4) why is WF not listing any short-term loss whereas Betterment does? (See details in point (2) above)

Thank you!

navyitaly
Posts: 237
Joined: Fri Jun 13, 2014 7:18 am

Re: TLH Wash Sale Scenario - help understand

Post by navyitaly » Tue Jul 24, 2018 5:03 pm

What did you buy SCHF for? that's kind of important...per share, # of shares, and total proceeds.

sman09
Posts: 207
Joined: Fri Mar 23, 2018 12:02 am

Re: TLH Wash Sale Scenario - help understand

Post by sman09 » Tue Jul 24, 2018 5:21 pm

Thank you.

From the information shared by Wealthfront in my account, i do not see the original purchase price

They only state the price at which they sold it for doing TLH :


SYMBOL TYPE SHARES SHARE PRICE DATE VALUE
SCHF Sell 80 $33.35 07/16/2018 -$2,668.00


Is there some place in the system, where i could find the information you ask for?

sman09
Posts: 207
Joined: Fri Mar 23, 2018 12:02 am

Re: TLH Wash Sale Scenario - help understand

Post by sman09 » Tue Jul 24, 2018 8:58 pm

I did not notice all the responses that had come here: viewtopic.php?f=1&t=254441&p=4035487#p4035487 and thinking there was no further response started this thread.

Thank you

@jacoavlu
@rgs92
@viz
@livesoft
@Freefun

for sharing your insights.

I think given the inputs in that other thread, closing the account and moving the funds back to my bank accoutn without any further delay is clear.

If some advice could be given to understand what exactly happens when i spot a wash sale event during tax filing time, that would help me be prepared.

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