I understand moving the bonds from the taxable account to non-taxable to realize the tax benefits of the losses before their expiration but how does moving the equities out of the TDA to the taxable account not result in losses? If monies are in a TDA by definition no taxes have yet been paid, so wouldn’t you pay the 25% tax rate when transferring them and thus reduce the total value of the portfolio? I do not believe this would classify as “transaction” expenses.
You aren’t transferring them. Sell them to cash, buy bonds with cash in TDA. Sell bonds to cash, buy equities with cash in Taxable account.
Can one of you guys e-mail me a .pdf of the CFAI 2010 AM answers? I just took this exam and don’t have the answer key - and the CFAI website is down for maintenance - FML. My e-mail is alfredpark.linkedin@gmail.com Thanks, guys.
Hi PWMCFA Just in case no one replied, pdf of historical exams & answers are on this page… http://www.cfainstitute.org/cfaprogram/courseofstudy/samples/Pages/index.aspx MBC