$331 loss harvested


Sold entire VWO position for $4,669 with cost basis of $5,000. Results in a loss of $331. Purchased $4,669 of IEMG.

$360 short-term gain


After 30-day window, sold entire IEMG position for $5,029. Results in a short-term capital gain of $360. Purchased $5,029 of VWO.

Tax Consequences:

Tax Strategy ST Realized Gain or (Loss) LT Realized Gain or (Loss) Taxes Deferred or (Incurred)
No TLH $0 $0 $0
TLH with 30-day switchbacks $360 $(331) $(15)

Assumptions: Calculations above assume one long-term tax lot intially purchased for $5,000 with no fees, expenses, or transaction costs. In concordance with the Betterment trading capability, these examples assume access to fractional shares rather than round lots. Tax is assumed at maximum California rates (federal: 39.6% on income, 23.8% on LTCG; state: 12.3%).