4 ms·
Another good explanation: http://www.cnbc.com/2014/11/26/beware-of-the-year-end-mutual-fund-tax-blowup.html http://www.cnbc.com/2014/11/26/beware-of-the-year-en
by aptimpropriety 11y ago
Another good explanation:
http://www.cnbc.com/2014/11/26/beware-of-the-year-end-mutual-fund-tax-blowup.html http://www.cnbc.com/2014/11/26/beware-of-the-year-end-mutual...
If these securities have been held for <1 year, their gain/loss goes into the short term bucket. So losses (in this case, writedowns) can offset the size of distribution, which is a bad deal for investors.
To a personal investor (e.g. mentioned in the world of WealthFront/Betterment), this is 'tax loss harvesting'.
- maxerickson 11y agoYes, I understand what capital gains and losses are. Is there one actually involved here?
- mrgordon 11y agoYeah agreed. The linked article mentions distributing income but snapchat has no dividends so it seems irrelevant. I'm not clear how this has any effect on Fidelity's taxes for 2015. It seems like its just bringing the valuations closer to what Fidelity expects they are worth so there are no surprises later.