How do I track stocks or ETFs for realizing long term capital gains?
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How do I track stocks or ETFs for realizing long term capital gains?
How do I track stocks or ETFs for realizing long term capital gains?
Let's say I buy ETFs monthly for several years but sometimes would like to take out some but only when they're eligible for long term capital gains, how does one do this?
Are each purchase tagged and can I choose which portions I want to sell?
Let's say I buy ETFs monthly for several years but sometimes would like to take out some but only when they're eligible for long term capital gains, how does one do this?
Are each purchase tagged and can I choose which portions I want to sell?
- retired@50
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Re: How do I track stocks or ETFs for realizing long term capital gains?
Since 2012, it's been the responsibility of your broker to track purchases, sales, etc.anaparafunds wrote: ↑Tue Jul 20, 2021 7:25 pm How do I track stocks or ETFs for realizing long term capital gains?
Let's say I buy ETFs monthly for several years but sometimes would like to take out some but only when they're eligible for long term capital gains, how does one do this?
Are each purchase tagged and can I choose which portions I want to sell?
As far as which portion to sell, that gets into which cost basis method to tell your broker to use to track your data.
See this wiki link: https://www.bogleheads.org/wiki/Cost_basis_methods
Most Bogleheads prefer Specific Identification as a cost basis method.
If liberty means anything at all it means the right to tell people what they do not want to hear. -George Orwell
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Re: How do I track stocks or ETFs for realizing long term capital gains?
Set your brokerage account to use Spec-ID so that you can choose which lots you want to sell based holding period.
https://investor.vanguard.com/taxes/cos ... tification
Cheers
https://investor.vanguard.com/taxes/cos ... tification
Cheers
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Re: How do I track stocks or ETFs for realizing long term capital gains?
retired@50 wrote: ↑Tue Jul 20, 2021 7:29 pmSince 2012, it's been the responsibility of your broker to track purchases, sales, etc.anaparafunds wrote: ↑Tue Jul 20, 2021 7:25 pm How do I track stocks or ETFs for realizing long term capital gains?
Let's say I buy ETFs monthly for several years but sometimes would like to take out some but only when they're eligible for long term capital gains, how does one do this?
Are each purchase tagged and can I choose which portions I want to sell?
As far as which portion to sell, that gets into which cost basis method to tell your broker to use to track your data.
See this wiki link: https://www.bogleheads.org/wiki/Cost_basis_methods
Most Bogleheads prefer Specific Identification as a cost basis method.
Thanks.Silk McCue wrote: ↑Tue Jul 20, 2021 7:31 pm Set your brokerage account to use Spec-ID so that you can choose which lots you want to sell based holding period.
https://investor.vanguard.com/taxes/cos ... tification
Cheers
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Re: How do I track stocks or ETFs for realizing long term capital gains?
Can I switch back and forth (spec ID to not spec ID) without incurring problems?
Re: How do I track stocks or ETFs for realizing long term capital gains?
You should really only use SpecID and nothing else
Crom laughs at your Four Winds
- anon_investor
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Re: How do I track stocks or ETFs for realizing long term capital gains?
You can physically do it in your Vanguard account, but if you sell some at one method, then change, you may have tax complications. Don't do it. Stay with Spec ID as others advise.anaparafunds wrote: ↑Wed Jul 21, 2021 2:06 am Can I switch back and forth (spec ID to not spec ID) without incurring problems?
See also: viewtopic.php?t=115864
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Re: How do I track stocks or ETFs for realizing long term capital gains?
Thanks.Tubes wrote: ↑Wed Jul 21, 2021 6:31 amYou can physically do it in your Vanguard account, but if you sell some at one method, then change, you may have tax complications. Don't do it. Stay with Spec ID as others advise.anaparafunds wrote: ↑Wed Jul 21, 2021 2:06 am Can I switch back and forth (spec ID to not spec ID) without incurring problems?
See also: viewtopic.php?t=115864