I would be interested to see how they would handle it.But I have been randomly selected for a compliance audit, and they are specifically looking at my portfolio sales for 2022 when I did about $250K in tax loss harvesting.
In the world of asset management it would be simple. They would ask for our work papers which would show the weights of the underlying indexes and our holdings which would show the overlap. We were expected to have access to premium data services (e.g. Bloomberg terminal) and produce the worksheets routinely. And the IRS had a set of offices in our office.
Technically this is the level that they could hold you. With the exception of the S&P 500 it is darn hard to get the weights that you need. Getting historical weights is harder. It can be done but it is a heavy bar on the average tax filer.
Statistics: Posted by alex_686 — Sun Jan 26, 2025 9:01 pm — Replies 19 — Views 1213