Personal Investments • Re: Tax Gain Harvesting

If you hold VFIAX at Vanguard, then selling would invoke the "cannot buy back for 30 days" triviality. So that's a "Why not?" But one can buy VOO instead right away.

That pairing might fall under the "substantially identical" rule - heck, you can convert the former into the latter and it's a non-taxable event.

There are no tax consequence for tax gain harvesting. He is only referring to the brokerage rules regarding round trip transactions. Otherwise, he could just sell VFIAX and buy it again immediately.

The IRS rule only applies to tax loss harvesting.

D'oh

Don't feel bad. When I did this for several years, Fidelity got very confused and kept telling me I'd messed up by re-buying the same security within 30 days. I'm like, I KNOW, I'm *trying* to realize the gain. The strategy worked but confused both Fidelity and my tax preparer.

Statistics: Posted by mffl — Wed Sep 04, 2024 12:28 am

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