I "blindly" tax loss harvest when there are losses worth my effort to harvest. I "blindly" harvested the third week of March in 2020. I harvested a couple of times in 2022. Haven't since. You can get 90% of the benefit of TLHing by doing 10% of the work. If you harvest no more frequently than every couple of months, you can easily avoid turning otherwise qualified dividends into unqualified dividends. Beyond that, I don't pay attention to dividends when I tax loss harvest. Both partners are going to pay similar amounts of dividends throughout the year. You've got better things to do with your life than trying to tax loss harvest multiple times a month. I know because I used to do that with 3 or 4 partners for each fund. Idiotic in retrospect.Why does the number of ex-div dates in a year matter to you? Seems of minimal relevance to me. I guess it makes me put two more entries in my spreadsheet each year which is kind of a pain I guess, but not enough of one that I would avoid a fund I otherwise like because of it.No but I'd rather avoid this situation: having an international fund that has 4x div dates, and TLHing into a fund with 2x div dates at year end before the last div date occurs. But you'd ignore this too?I don't think this is a very relevant issue when choosing a partner. Do you actually try to tax loss harvest between the dates to save some dividend tax? Seems pretty tricky. I'd ignore it.I'm seeking the ideal TLH pairs for VTI and VEA.
Originally I was looking at SCHB, but it has 2x ex-dividends whereas VG has 4x dividends, and thus I would likely double dip (well 1.5x) on dividends depending on the timing of a harvset. I stumbled upon the fact that VTI and VV (large cap), have the exact same ex-dividend dates historically. Whereas VOO deviates for some reason. Would this be a reason to prefer VTI/VV as pairs? It seems rather convenient and removes any thought to the process.
I also looked for pairs on VEA. VEU has exact matching dates, but unfortunately includes emerging markets and has a higher unqualified dividend yield. So in this case I'm inclined to stick to SCHF despite the dividend date differences. Is this something that really matters and is it something I should pay attention to?
When it comes to some pairs, I have no choice at all. For example AVUV -> DFSV and AVDV -> DISV. These two might even move a little bit less in lockstep. Is it still worth executing a TLH here?
Thanks I like to be prepared Image may be NSFW.
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I use ITOT for VTI, DFSV for AVUV, DISV for AVDV, and IXUS for VXUS. If I invested in VEA I'd use EFA or maybe just VXUS for it.
If you don't tax loss harvest frenetically, one partner is plenty.
That was an example to exacerbate the point since the second one on a 2x fund would be larger.
I decided the dates don't matter as much as when I made this post. So you'd just blindly TLH without caring about the ex-div dates and double-dipping or having a bigger hit? Thanks
Statistics: Posted by White Coat Investor — Wed Mar 06, 2024 4:08 pm — Replies 19 — Views 753