The whole point is to offset the short-term gains against the large carryover capital loss (which can be long- or short-term). Most states treat capital gains the same as federal, so in most cases there's zero state income tax on the interest income that's "converted" this way.Wouldn't this be tax inefficient ? SGOV dividend/interest will not be taxed in the State Tax, whereas a short term capital gain tax will be state taxed. Are you doing this because you have a loss to net this short term gain ?Update: I've been executing this strategy for a couple of months now. Works great and easy to do. I sell all the SGOV shares close to the end of the last trading day of the calendar month and buy it right back the morning of the following trading day (after the NAV has fallen to account for the monthly dividend). No dividend payments, and the interest is effectively captured as short-term capital gains instead of through the monthly dividend payouts.
Statistics: Posted by 02nz — Sat Apr 06, 2024 2:01 am — Replies 20 — Views 4729