Our bond funds are long term losses, but they make a good monthly payment. Therefore, I decided to tax loss harvest. I will sell the bond fund losses to offset capital gains that I have, so that we don't pay taxes on the gains.
Since I believed the market is strong, I have first buying the amount I plan to sell. I will hold it for at least 31 days, to avoid being a wash sale, and then sell the same amount of shares for a loss. Net, I will still have the same income as if I didn't make the trade.
The main risk is the bond fund keeps declining during the 31 days. However, it is a risk I willing and able to take. We'll see how this works out in the next month.
This is not financial advice. Please consult a professional advisor.
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