How do I track stocks or ETFs for realizing long term capital gains?

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Topic Author
anaparafunds
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How do I track stocks or ETFs for realizing long term capital gains?

Post by anaparafunds »

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?

:(
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retired@50
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Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by retired@50 »

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?

:(
Since 2012, it's been the responsibility of your broker to track purchases, sales, etc.

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.
This is one person's opinion. Nothing more.
Silk McCue
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Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by Silk McCue »

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
Topic Author
anaparafunds
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Joined: Sun Jul 18, 2021 5:50 am

Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by anaparafunds »

retired@50 wrote: Tue Jul 20, 2021 7:29 pm
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?

:(
Since 2012, it's been the responsibility of your broker to track purchases, sales, etc.

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.
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
Thanks.
Topic Author
anaparafunds
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Joined: Sun Jul 18, 2021 5:50 am

Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by anaparafunds »

Can I switch back and forth (spec ID to not spec ID) without incurring problems?
muffins14
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Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by muffins14 »

You should really only use SpecID and nothing else
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anon_investor
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Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by anon_investor »

muffins14 wrote: Wed Jul 21, 2021 5:52 am You should really only use SpecID and nothing else
+1
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Tubes
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Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by Tubes »

anaparafunds wrote: Wed Jul 21, 2021 2:06 am Can I switch back and forth (spec ID to not spec ID) without incurring problems?
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.

See also: viewtopic.php?t=115864
Topic Author
anaparafunds
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Re: How do I track stocks or ETFs for realizing long term capital gains?

Post by anaparafunds »

muffins14 wrote: Wed Jul 21, 2021 5:52 am You should really only use SpecID and nothing else
anon_investor wrote: Wed Jul 21, 2021 6:19 am
muffins14 wrote: Wed Jul 21, 2021 5:52 am You should really only use SpecID and nothing else
+1
Tubes wrote: Wed Jul 21, 2021 6:31 am
anaparafunds wrote: Wed Jul 21, 2021 2:06 am Can I switch back and forth (spec ID to not spec ID) without incurring problems?
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.

See also: viewtopic.php?t=115864
Thanks.
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