So, what just happened here? The number of units didn’t change, nor did the market value. From your portfolio’s perspective, you didn’t do anything at all. But you were able to take part of that unrealized capital gain, which would have been a future tax bill, and deliberately realize part of it for free inside your 0 percent capital gains tax bracket. And then, by immediately rebuying the same units, you were able to restore your original portfolio, only now with a much lower unrealized capital gain. Do that a few times and after a couple of years, you’ll be able to get your basis to catch up
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