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Yet another TLH Question

Posted: Sun Dec 23, 2018 6:19 pm
by SOJ
Hello, and Thanks for any input. I need to sell some Wellington and some Wellesley to harvest some tax losses, I'd like to buy Balanced Index for at least the 31 days, would this fund be substantially the same as either of the funds I am selling and constitute a wash sale? Thanks Again

Re: Yet another TLH Question

Posted: Sun Dec 23, 2018 7:32 pm
by Nate79
SOJ wrote: Sun Dec 23, 2018 6:19 pm Hello, and Thanks for any input. I need to sell some Wellington and some Wellesley to harvest some tax losses, I'd like to buy Balanced Index for at least the 31 days, would this fund be substantially the same as either of the funds I am selling and constitute a wash sale? Thanks Again
Not even close to substantially identical in my opinion.

Re: Yet another TLH Question

Posted: Sun Dec 23, 2018 10:05 pm
by rkhusky
Agree with above.

Re: Yet another TLH Question

Posted: Sun Dec 23, 2018 11:35 pm
by PhysicianOnFIRE
SOJ wrote: Sun Dec 23, 2018 6:19 pm Hello, and Thanks for any input. I need to sell some Wellington and some Wellesley to harvest some tax losses, I'd like to buy Balanced Index for at least the 31 days, would this fund be substantially the same as either of the funds I am selling and constitute a wash sale? Thanks Again
You're very much in the clear as far as purchasing a fund that's not substantially identical.

The issue I see is that none of these funds (Wellington, Wellesley, or Balanced Index) are particularly tax efficient. I wouldn't want to be holding any of these in a taxable brokerage account. You may want to TLH to a US stock index fund and muni bond fund.

:beer
-PoF

Re: Yet another TLH Question

Posted: Sun Dec 23, 2018 11:37 pm
by mcraepat9
PhysicianOnFIRE wrote: Sun Dec 23, 2018 11:35 pm
SOJ wrote: Sun Dec 23, 2018 6:19 pm Hello, and Thanks for any input. I need to sell some Wellington and some Wellesley to harvest some tax losses, I'd like to buy Balanced Index for at least the 31 days, would this fund be substantially the same as either of the funds I am selling and constitute a wash sale? Thanks Again
You're very much in the clear as far as purchasing a fund that's not substantially identical.

The issue I see is that none of these funds (Wellington, Wellesley, or Balanced Index) are particularly tax efficient. I wouldn't want to be holding any of these in a taxable brokerage account. You may want to TLH to a US stock index fund and muni bond fund.

:beer
-PoF
+1 POF is right on the money here. Great opportunity to fix tax efficiency of your taxable account holdings.

Re: Yet another TLH Question

Posted: Mon Dec 24, 2018 9:25 am
by SOJ
Thanks to all of you, good advice taken.