I would like to sell X number (or X dollar amount) of fund shares in my brokerage to generate no more that $1000 in capital gains for 2024.
I’m at Schwab, I’ll refrain from lamenting over what I didn’t do when I opened the account because I didn’t know to do so.
The average cost basis is $57 per share. I’d prefer to use those at $81 per share.
I was chatting with a rep who was very helpful. When I explained my goal he wrote back:
Since the cost basis was set to average prior to your form that you turned in September, we will report the average cost basis to the IRS when you make a sale regardless of the lot selected since it is not a retroactive change. That means you can add up from the Lot Details page what the current unrealized gain is to get an idea of what you might realize based on the shares sold. Since it will sell based on the Net Asset Value determined at the end of the day, we cannot guarantee a specific gain or loss amount.
I understand that the sale happens after market close but I don’t understand the implications of what he wrote as regards the IRS. The purpose of the transaction as is is to avoid a higher tax bill. Further, to sell specific lots I have to go through a representative. It's getting complicated.
Should I just sell at the $57 and go for a bike ride?
I’m at Schwab, I’ll refrain from lamenting over what I didn’t do when I opened the account because I didn’t know to do so.
The average cost basis is $57 per share. I’d prefer to use those at $81 per share.
I was chatting with a rep who was very helpful. When I explained my goal he wrote back:
Since the cost basis was set to average prior to your form that you turned in September, we will report the average cost basis to the IRS when you make a sale regardless of the lot selected since it is not a retroactive change. That means you can add up from the Lot Details page what the current unrealized gain is to get an idea of what you might realize based on the shares sold. Since it will sell based on the Net Asset Value determined at the end of the day, we cannot guarantee a specific gain or loss amount.
I understand that the sale happens after market close but I don’t understand the implications of what he wrote as regards the IRS. The purpose of the transaction as is is to avoid a higher tax bill. Further, to sell specific lots I have to go through a representative. It's getting complicated.
Should I just sell at the $57 and go for a bike ride?
Statistics: Posted by Tejfyy — Mon Dec 30, 2024 11:46 am — Replies 2 — Views 127