I don't *want* to own DDVAX, but I learned within the last year that my parents set up an account in my name decades ago that holds a modest amount of it. I hadn't sold out of it yet b/c I anticipate being right on the boundary of the 12/22% fed bracket and thus also right on the boundary of the 0/15% LTCG bracket. I planned to get out much cheaper in either 2025 or 2026 after semi-retiring.
DDVAX is normally a pretty slow mover but it took a sudden deep plunge of almost -25% a couple days ago. I was puzzled for a while but I think it's because the fund itself just sold out of a significant LTCG position, leading to the big change in fund price.
I'm a real noob at most of this stuff and have never attempted tax loss harvesting. I didn't even know the phrase before last year. But because those LTCG's just happened at me in 2024 when I'm right near the crossover point for tax brackets, I *think* I should quickly sell off any shares that would show a loss to help offset the effect of some of the LTCG's.
I just started the process over on Fidelity and it's showing that some of the losses are long-term and others are short-term. The grand total of all the losses is under $3000, which I understand is a significant number related to income offsets, but I don't understand all the details.
Do only my long-term losses offset the LTCG's? Would I need to try realize short-term losses to offset any short-term gains? Or can I just lump all the losses together and offset against income b/c the total losses are less than $3000?
Thanks for any help!
DDVAX is normally a pretty slow mover but it took a sudden deep plunge of almost -25% a couple days ago. I was puzzled for a while but I think it's because the fund itself just sold out of a significant LTCG position, leading to the big change in fund price.
I'm a real noob at most of this stuff and have never attempted tax loss harvesting. I didn't even know the phrase before last year. But because those LTCG's just happened at me in 2024 when I'm right near the crossover point for tax brackets, I *think* I should quickly sell off any shares that would show a loss to help offset the effect of some of the LTCG's.
I just started the process over on Fidelity and it's showing that some of the losses are long-term and others are short-term. The grand total of all the losses is under $3000, which I understand is a significant number related to income offsets, but I don't understand all the details.
Do only my long-term losses offset the LTCG's? Would I need to try realize short-term losses to offset any short-term gains? Or can I just lump all the losses together and offset against income b/c the total losses are less than $3000?
Thanks for any help!
Statistics: Posted by ER_LatePlanner — Wed Dec 18, 2024 12:37 pm