It was somewhere around a quarter of a percent distribution that was more than half LT (with uncertainty of whether the distribution will recur). While this creates uncertainty which I don't like, for last year, it was still very tax efficient and doesn't change the calculus too much. BOXX provides tax deferral + LTCG tax rate on realized amounts. The longer the holding period, the more the tax deferral matters too. It can also potentially allow you to manage your income levels to qualify for things like obamacare benefits.So now that you have received distributions for both LTCG and STCG for your BOXX holdings, how do you now view its tax efficiency? Especially compared to something like SGOV which is 1-3 month T-Bills?
Don't know why you would, but If you were trying to fully create taxable income through BOXX at the treasury interest amount each year, you would just realize extra gains above the distribution to get you to the same amount as the treasury interest. Assuming LT holdings periods, at current treasury rates and last year distribution percentage, if I did my approximate math right, somewhere around 3% of your "interest" would be short term.
My potential issue with BOXX is more around the uncertainty of the risk of it's tax strategy being disallowed and what would happen if so.
Statistics: Posted by dan23 — Mon Feb 10, 2025 7:25 pm