Non-investing personal finance issues including insurance, credit, real estate, taxes, employment and legal issues such as trusts and wills
4 posts • Page 1 of 1
So far I’ve avoid TLH’ing mainly due to the fact that I’m continually buying and I wanted to avoid having multiple different funds. Currently in our taxable account we hold VTI and VXUS. I’m considering selling any lots that have a loss and replacing with VT. Is this a rational and reasonable approach? Are there any caveats I need to be aware of? I’m in the process of reading the wiki, but figured some input here may help me avoid a costly mistake. Thx!
My understanding is you don't get the foreign tax credits with VT because less than 50% is international. That would be one drawback. The other is you can't control your level of international exposure (some global-market-weight-enthusiasts consider this a plus). I'm not sure on the TLH compatibility, others will know.
One needs to read more carefully. If one sells at a loss the shares purchased in the previous 30 days and does not buy replacement shares, then there is no wash sale. Basically, you have described one of the most cherished myth about wash sales. A small effort has been made to update the Wiki to note this exception, but it never gained any traction.