When to TLH?

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northtexan
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Joined: Mon Jul 11, 2016 8:11 pm

When to TLH?

Post by northtexan » Mon Oct 15, 2018 6:20 pm

With the market down the past week or so, I was wondering at what percentage point people pull the trigger and TLH. I know a lot of people say to do it whenever it is possible, I assume that means any loss they get, they immediately TLH. This would lead to a lot of work and money(unless you have free trades). Assuming you have free trades, TLH frequently could also lead to wash sale if you "runout" of funds to perform the TLH with.

At what percentage loss do you TLH?

sport
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Location: Cleveland, OH

Re: When to TLH?

Post by sport » Mon Oct 15, 2018 6:48 pm

I just wait until the end of the year and sell anything that is down a significant amount. Generally I will sell around the middle of December and buy it back after 31 days, or so. If the amount of the loss is trivial, I won't bother.

MotoTrojan
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Re: When to TLH?

Post by MotoTrojan » Mon Oct 15, 2018 6:54 pm

sport wrote:
Mon Oct 15, 2018 6:48 pm
I just wait until the end of the year and sell anything that is down a significant amount. Generally I will sell around the middle of December and buy it back after 31 days, or so. If the amount of the loss is trivial, I won't bother.
You don’t hold similar funds during that month? Interesting approach.

My IPS says $500. Now that I’ve done it twice this year and scratched the itch I’ll probably update to $1000, $500 in December, or any amount that moves me back to my desired core fund.

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car733
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Location: Chicago, IL

Re: When to TLH?

Post by car733 » Mon Oct 15, 2018 7:07 pm

It's kind of hard to run out of funds to TLH. For US, I have been using: VTI => SCHB => ITOT.

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Phineas J. Whoopee
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Joined: Sun Dec 18, 2011 6:18 pm

Re: When to TLH?

Post by Phineas J. Whoopee » Tue Oct 16, 2018 6:25 pm

I've used a dollar amount, not a percentage. Of course it's arbitrary, but better than lying awake at night. $1,000.
PJW

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Makaveli
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Joined: Mon May 19, 2014 11:18 pm

Re: When to TLH?

Post by Makaveli » Tue Oct 16, 2018 8:57 pm

Dollar amount likely best, percentage will continue to change, and get larger, as your portfolio grows.

28fe6
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Re: When to TLH?

Post by 28fe6 » Tue Oct 16, 2018 10:28 pm

If I'm in the 12% bracket, and thus LTCG exempt, can I still TLH?

Tracy
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Joined: Fri Mar 01, 2013 2:09 am

Re: When to TLH?

Post by Tracy » Wed Oct 17, 2018 3:17 am

I go by percentages. If a holding is down by 3% or more, I tax loss harvest. I have a Vanguard account and use Vanguard funds or ETFs, so there's no commission for the trades.

rkhusky
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Joined: Thu Aug 18, 2011 8:09 pm

Re: When to TLH?

Post by rkhusky » Wed Oct 17, 2018 6:07 am

28fe6 wrote:
Tue Oct 16, 2018 10:28 pm
If I'm in the 12% bracket, and thus LTCG exempt, can I still TLH?
Sure. If you don't have any LTCG this year then you can use the losses to offset $3K in income.

bradpevans
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Re: When to TLH?

Post by bradpevans » Wed Oct 17, 2018 10:32 am

28fe6 wrote:
Tue Oct 16, 2018 10:28 pm
If I'm in the 12% bracket, and thus LTCG exempt, can I still TLH?
Tax loss against INCOME is usually preferable to tax loss against gains (depending on rates of course)

Either way, you eventually will pay gains against the now lower basis

livesoft
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Joined: Thu Mar 01, 2007 8:00 pm

Re: When to TLH?

Post by livesoft » Wed Oct 17, 2018 12:08 pm

bradpevans wrote:
Wed Oct 17, 2018 10:32 am
Either way, you eventually will pay gains against the now lower basis
?
... unless your LT capital gains tax rate is zero or you give your shares away to charity.
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H-Town
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Joined: Sun Feb 26, 2017 2:08 pm

Re: When to TLH?

Post by H-Town » Wed Oct 17, 2018 12:17 pm

northtexan wrote:
Mon Oct 15, 2018 6:20 pm
With the market down the past week or so, I was wondering at what percentage point people pull the trigger and TLH. I know a lot of people say to do it whenever it is possible, I assume that means any loss they get, they immediately TLH. This would lead to a lot of work and money(unless you have free trades). Assuming you have free trades, TLH frequently could also lead to wash sale if you "runout" of funds to perform the TLH with.

At what percentage loss do you TLH?
When I feel it's worth it to execute TLH transaction. I did TLH both in Feb and Oct this year.

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