tag:blogger.com,1999:blog-6097510160054715524.post227382537499839184..comments2024-01-03T21:42:28.979-08:00Comments on DivGro: The Other Way To Harvest Tax LossesFerdiShttp://www.blogger.com/profile/05008021146951839361noreply@blogger.comBlogger6125tag:blogger.com,1999:blog-6097510160054715524.post-61631990500352127422015-11-28T08:12:54.244-08:002015-11-28T08:12:54.244-08:00Thanks, Ben -- I just barely scratched the surface...Thanks, Ben -- I just barely scratched the surface here. I'm certainly not a tax expert and there seems to be a lot of details to be aware of. With this article (and the follow-up in December), I'm trying to learn and share, hopefully something useful!FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-64030536656655327982015-11-28T08:08:39.510-08:002015-11-28T08:08:39.510-08:00Interesting article, there is not enough tax analy...Interesting article, there is not enough tax analysis out there in the dividend community. Anonymoushttps://www.blogger.com/profile/02969562229196097519noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-57803564120865615102015-11-26T23:33:12.690-08:002015-11-26T23:33:12.690-08:00Thanks for visiting! It is good that you're th...Thanks for visiting! It is good that you're thinking about tax-loss harvesting in relation to your current tax rate... that's an important consideration that I didn't mention in the article. So of the articles I link to do, however.<br /><br />Taking a loss on my QCOM position would benefit me at tax time. I'm also taking the opportunity to buy more shares (at a lower price) than I would be selling at the end of December. If I had more cash on hand, I would have bought 100 shares (about $5,000 in capital). Obviously, having more shares increases my projected dividend income.<br /><br />Take care!FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-45497208001060552692015-11-26T23:14:36.777-08:002015-11-26T23:14:36.777-08:00Thanks for commenting, DGI -- and for sharing the ...Thanks for commenting, DGI -- and for sharing the nuances of your risk management strategy. I'm guessing the call and put would essentially be offsetting, correct? I can see how that would mitigate risk.<br /><br />For now, I don't have the flexibility of doing something similar and I'll have to live with the increased risk. First, the brokerage hosting my DivGro portfolio does not offer options, presently, and I don't have at least 100 shares of QCOM to execute such trades. <br /><br />I'm sure other readers would benefit from your comment, though, so thanks again!FerdiShttps://www.blogger.com/profile/05008021146951839361noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-48907569967829659282015-11-26T15:43:14.468-08:002015-11-26T15:43:14.468-08:00I've never done tax loss harvesting in prior y...I've never done tax loss harvesting in prior years but will be considering it in the future. Not necessarily this year as I'm thinking of trying to maximize some gains due to our lower tax rate, although I'm not 100% sold on selling just to step up the cost basis. The dividend stream would remain the same, less transaction costs, but the YOC would suffer although that's just a backward looking metric anyways and doesn't change what your portfolio actually churns out based on the current value. Whenever I do go after some tax loss harvesting in the future my plan is to go the route of purchasing shares beforehand and then selling the original lots just like you did with QCOM. It can be beneficial if your positions are somewhat sizable and are sitting on hefty losses, but you have to make sure it's worth it to go through the hassle.Passive Income Pursuithttps://www.blogger.com/profile/13947101854482544346noreply@blogger.comtag:blogger.com,1999:blog-6097510160054715524.post-15969387466371130282015-11-26T15:36:17.108-08:002015-11-26T15:36:17.108-08:00Hi DivGro,
I am glad you are thinking of tax loss...Hi DivGro,<br /><br />I am glad you are thinking of tax loss harvesting for companies you are interested in. <br /><br />As many of my energy picks have been going down ( or had been down in August/September), I did quite a lot of TLH.<br /><br />If I owned QCOM however, and did TLH, I would have doubled the position like you did. However, I would also sell a covered call that expires at least 32 days from now to lock in the price for the first shares I owned. Then I would have bought a protective put on the original shares to protect me in case my shares went down. The goal is to harvest losses, not increase my risk in the position by a factor of two.<br /><br />Thanks for your mention by the way.<br /><br />DGIDividend Growth Investorhttp://www.dividendgrowthinvestor.com/noreply@blogger.com