Tax Loss Harvesting

VT ⇄ SPGM Tracker

Multi-round harvest tracker · wash sale protection · rebound guide
Complete these steps before every harvest — the one-time setup items only need verification once, but the pre-sale steps apply each time you sell.
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One-Time Setup
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Turn off DRIP on all equity ETFs across every account
Fidelity: Account → Dividends & Capital Gains → set all equity ETFs to "Pay to Cash". Do this in taxable, IRA, and 401k. Check spouse accounts too. SPAXX money market reinvestment is fine to leave on.
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Confirm cost basis method is Specific Lot ID at Fidelity
When placing a sell order, choose "Specific Shares" to select exactly which lots to sell. This is critical for leaving recent lots untouched each round.
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Disable any automatic VT purchases across all accounts
Check recurring investments, 401k auto-contributions, and scheduled transfers. Any automatic VT buy during a 31-day window will trigger a wash sale on that round's loss.
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Before Each Sale
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Identify all VT lots older than 31 days
Fidelity: Positions → VT → Cost Basis, sort by acquisition date. Mark which lots are eligible (>31 days) and which to leave untouched. If you have an active round in progress, check the Rounds tab first.
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Verify no active wash sale windows overlap
Check the Rounds tab. If a prior round's 31-day window is still open, you cannot buy VT in any account right now. Make sure you understand which lots are currently "at risk" before adding a new round.
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Sell only eligible lots using Specific Lot selection
Execute the sale and verify lot dates on the order confirmation before submitting. Leave any lots purchased within the past 31 days untouched.
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Immediately buy SPGM with full proceeds — same day
Do not sit in cash. Buy SPGM the same day to maintain full market exposure. SPGM tracks the MSCI ACWI IMI — different index from VT's FTSE Global All Cap, so no wash sale risk.
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Redirect monthly DCA from VT → SPGM for 31 days
Update your recurring investment. You'll typically redirect 1 monthly purchase. Set a calendar reminder for day 32 to switch it back, then log this harvest in the Rounds tab.

Log a New Harvest Round

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No harvest rounds yet.
Log your first one above after selling VT.

Completed Harvests
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Completed rounds appear here.
Mark rounds complete in the Rounds tab.

Tax Filing Checklist
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Locate Form 1099-B from Fidelity (January/February)
Verify all harvested losses appear correctly and no wash sales are flagged incorrectly. Cross-reference against your Rounds log above.
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Report all capital losses on Schedule D
Losses offset capital gains dollar-for-dollar. Up to $3,000 of net losses can offset ordinary income. The rest carries forward indefinitely — no expiration.
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Verify SPGM gains/losses are correctly reported
Each time you sold SPGM to return to VT is a separate taxable event. Confirm those are on your 1099-B and properly netted against your harvested losses.
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Note carryforward loss amount for future years
TurboTax and most tax software handle this via the carryover worksheet. Write the carryforward amount here for reference next year.
Being "trapped" in SPGM during a rebound is less of a problem than it feels — SPGM and VT move together (0.83+ correlation). You are riding the recovery. Here's how to handle each scenario.
Scenarios
Window clears and SPGM is up modestly Low friction

Sell SPGM and rebuy VT as planned. The short-term gain on SPGM is a taxable event, but your harvested VT losses offset it dollar-for-dollar. Net result: back in VT with losses still intact.

SPGM has a large short-term gain Consider waiting

If the gain is large and you're within the first year of holding SPGM, consider waiting until the lot passes the 1-year mark — the gain becomes long-term (15% rate vs ordinary income rate). Your harvested VT losses can offset it either way, but the lower rate is more efficient. Check if your remaining VT lots are still getting full market exposure in the meantime.

SPGM dips again before your window clears Best case

You can harvest a loss on SPGM itself on the way out — sell SPGM at a loss and rebuy VT. This stacks a second harvest on top of the first. Since you're leaving SPGM entirely, there's no wash sale concern from the SPGM sale (VT is not substantially identical to SPGM).

You return to VT and it drops again Harvest again

This is the repeating flip. Once back in VT with lots >31 days old, if VT drops enough, do another full round. Log it in the Rounds tab. Each round is independent — losses stack and carry forward indefinitely. There is no limit to how many harvest rounds you can do.

VT is rallying hard while you're stuck in SPGM Don't panic

SPGM has a 0.83+ correlation with VT and holds the same top 10 positions. If VT is rallying, your SPGM position is almost certainly rallying at a nearly identical rate. You are not missing the recovery — you're fully invested in it. The only thing missing is the VT ticker name.

Key Principles to Remember
Harvested losses are permanent. A loss locked in today cannot be undone by future VT gains. Any future gains — whether in VT or SPGM — are simply separate taxable events your banked losses can absorb.
Losses carry forward with no expiration. If you harvest more than you can use this year, the excess offsets gains in any future year automatically. Track the carryforward in the Log tab.
Short-term vs long-term on SPGM exit matters. Selling SPGM within 1 year of buying it generates a short-term gain (ordinary income rate). After 1 year it's long-term (typically 15%). If your SPGM gains are significant, timing your exit past the 1-year mark can make a meaningful difference — especially if your harvested losses can't fully absorb the gain.

Clear all tracker data and start fresh