2/3/2014
Sold entire VWO position for $4,669 with cost basis of $5,000. Results in a loss of $331. Purchased $4,669 of IEMG.
3/6/2014
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 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%).