Tax Harvesting Before Year End

Well I waited until the 2nd to last day of the year to do it, but I finally sold some stocks (PFE, WB) in my taxable portfolio that held substansial losses for me. My plan was to harvest the tax loss and immediate use the proceeds to make an identical investment in an index ETF. Because these investments are split over multiple brokerage accounts (Sharebuilder, Vanguard) you will notice I had to make mulitple sales/purchases for the same security (WB).

Investment

Date

Shares Sold

Share Price

Net Sale

Wachovia (WB)

12/17/2008

40.26

$5.94

$239.18

Pfizer (PFE)

12/29/2008

500

$17.20

$8591.95

Wachovia (WB)

12/30/2008

100

$5.71

$563.09


My plan was to immediately tansition the proceeds into index ETFs, but I haven't kept up with that side. Ofcourse stocks have been trending up the last few days so I have hesitated putting all this money immediately in the market. I do have outstanding buy limit orders for the rest of the proceeds.

Investment

Date

Shares Bought

Share Price

Net Investment

Vanguard Extended Index (VXF)

12/17/2008

8

$31.66

$253.28

SPDR Healthcare Index

12/30/2008

200

$20.50

$4,108.00

 

 

 

 

 

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Comments (6)


i may be wrong, but i think the stocks you sold on the 29th and 30th won't qualify as 2008 sales b/c they settle in 2009. check into that to be sure

I was looking at selling some of my portfolio and use the losses for my tax return but decided against it. My stocks are long term and believe this particular one to have solid financials and will no doubt swing back up.
Index ETFs are definitely a good idea.

No they will, he got the cash in 2008.

No. I think you are all right for 2008 tax purposes. Pretty sure it goes off of trade date, not settlement date.

are you claiming you made money on WB?

Ha - no - I lost my shirt in Wachovia - no doubt.

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