Need a quick gut check that this all makes sense.
Left my FA in January to go on my own. Sold all positions in a 15+ fund portfolio to move self-managed 80/20 VTI/VXUS. Put the 1.3% advisor fee and 0.3% ETF fees back into my pocket.
I incurred $44k in realized gains with the liquidation. Estimated tax payment is due before 4/15 - roughly $13k between Fed & State. Don't need to liquidate any more positions to pay this, I have had it off to the side in cash.
Current unrealized losses on the year so far are $12,500.
I want to liquidate the VTI to move to FSKAX and liquidate the VXUX to move to FTIHX – are these “substantially identical”? Seems like not even the IRS knows.
Turn off DRIP to avoid wash rule.
Turn my $44k realized gains into $31.5k. Submit estimated tax payment on only $31.5k now.
If the market continues on it’s downward trajectory, wait until I can lock in another decently large loss to switch back to VTI/VXUS (after 31+ days), in hopes of recouping some (or all) of the estimated tax payment with my refund during tax season next year.
All makes sense? Am I missing anything?