I manage all of my investment accounts with a pretty hands off approach, but have been investing a quarterly bonus to rebalance them each time to meet our planned asset allocation. I have everything at Fidelity, since it allowed me to rollover my IRA into a 401k, and thereby do backdoor Roths every year. I have dividends automatically re-invested, and have never done any tax loss harvesting. I admit it intimidates me.
Seeing the WCI post on how to TLH with Vanguard (https://www.whitecoatinvestor.com/tax-loss-harvesting-vanguard/) has made me realize I can see the cost basis pretty easily on Fidelity as well, but I can’t seem to figure out how to sort them into specific identification. It lumps them all together, and since I’ve been doing this a while, the overall cost basis per share is always lower than the current trading price. I also know that the reinvesting of dividends means there are a lot of small transactions along the way.
Does anyone have tips on how to see the specific identification cost basis on Fidelity? And should I stop reinvesting dividends if I plan to TLH?
Thanks!February 8, 2019 at 7:32 am MST #189228Vagabond MDParticipantStatus: PhysicianPosts: 2950Joined: 01/21/2016
Yes, they make this somewhat opaque at Fidelity.
When you select the security from your portfolio and hit the “trade” button, in small blue letters near the bottom of the pop up, there is the option to “switch to the expanded trade ticket”. That will allow you to select cost lots and will even automatically choose the highest cost shares for your convenience.
"Wealth is the slave of the wise man and the master of the fool.” -Seneca the YoungerGasFIREParticipantStatus: PhysicianPosts: 140Joined: 01/08/2018
Are you investing in stocks, ETFs, or mutual funds? If you invest in mutual funds you are give the choice of specific lots or average cost basis. You can find the individual lots as @vagabondmd suggests but they will all have the same basis if they’re under the ACB.February 8, 2019 at 9:08 am MST #189254
Are you investing in stocks, ETFs, or mutual funds? If you invest in mutual funds you are give the choice of specific lots or average cost basis. You can find the individual lots as @vagabondmd suggests but they will all have the same basis if they’re under the ACB.Click to expand…
They are all mutual funds. Does that mean I won’t be able to separate out the lots?
Thanks!February 8, 2019 at 9:20 am MST #189257GasFIREParticipantStatus: PhysicianPosts: 140Joined: 01/08/2018
Check your specific lots. If they all have the same cost basis, you are under ACB. If they are all different, then you can pick and choose individual lots. If under ACB it doesn’t mean you don’t have a loss. You just can’t maximize your loss unless you sell the entire mutual fund. When you buy a new fund, you are given the choice of whether you want specific lots or average cost as your basis.February 8, 2019 at 10:51 am MST #189300
Thanks. Apparently I need to to convert the cost basis method from average cost to specific shares, and it will
only be prospective. I am being warned that I need to understand the consequences of this, and I’m not sure I do. Perhaps I am in over my head.February 9, 2019 at 8:03 am MST #189467PedsParticipantStatus: PhysicianPosts: 2699Joined: 01/08/2016
Yes spec ID. Yes stop dividend reinvestment.
When you find something with a small loss just try it. It’s really not that scary.
But no one said you have to do any TLH to be successful.EM_INDYParticipantStatus: Physician, Small Business OwnerPosts: 13Joined: 01/23/2016
I think this will help you. It’s PoF’s step by step guide. I used it and I thought it was very helpful.
I think this will help you. It’s PoF’s step by step guide. I used it and I thought it was very helpful.Click to expand…
Thank you! This is perfect!February 11, 2019 at 5:28 pm MST #190018