Help me TLH [Tax Loss Harvest]

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Topic Author
imflyboy
Posts: 115
Joined: Thu Dec 15, 2011 12:55 pm

Help me TLH [Tax Loss Harvest]

Post by imflyboy »

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!
homebuyer6426
Posts: 988
Joined: Tue Feb 07, 2017 9:08 am

Re: Help me TLH

Post by homebuyer6426 »

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.
Topic Author
imflyboy
Posts: 115
Joined: Thu Dec 15, 2011 12:55 pm

Re: Help me TLH

Post by imflyboy »

One other question…..wash sale rules are clear as mud to me. I buy continually, usually every week or so….reading the wiki it seems I need to have not purchased shares at least 30 days prior?🤷‍♂️
livesoft
Posts: 81205
Joined: Thu Mar 01, 2007 8:00 pm

Re: Help me TLH

Post by livesoft »

imflyboy wrote: Thu Sep 22, 2022 9:10 am One other question…..wash sale rules are clear as mud to me. I buy continually, usually every week or so….reading the wiki it seems I need to have not purchased shares at least 30 days prior?🤷‍♂️
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.
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