Was forced to liquidate about $14k of VOO stock that was in a margin account not too long ago because my Reg-T was in the red. Transferred more assets into the IBKR account and bought back the same number of VOO shares five days later. I'm gonna have to pay taxes on this aren't I?
Kinda pissed off about it, although I guess I have no one to blame but myself.
I thought I'd at least get a margin call or something from IBKR, I did not realize that they just go ahead and sell your shares for you at 3:50pm with virtually no notice. The lesson here, I suppose, is to read the fine print at these brokerages a little closer before you sign up.
I had way more stocks in my Fidelity account so I just transferred more holdings from there into my IBKR account so that I could have more than enough margin to get back my VOO shares that were liquidated. It took a few days for the transfer to go through but ironically I actually bought them back at a lower price because the market was dipping ever so slightly.
The frustrating thing is that my average cost basis on the VOO shares had been around ~$350 since I'd been buying them intermittently for the last several years, so by selling around $510, I basically have to pay capital gains taxes on that $160 per share, which was not my plan here lmao.
The whole reason I transferred assets to IBKR from Fidelity in the first place was that I wanted to save money by finding a cheaper margin loan interest rate. Not to get forcefully liquidated all of a sudden one day lol.
Someone here please tell me there is some obscure reverse wash-sale rule where I can dodge this tax burden hahaha
Posted Jul 24, 2024, 3:09 PM UTC