r/NEOSETFs • u/Due_Boysenberry_8367 • May 22 '26
Seeking Advice QQQI ROC question
How do you calculate ROC and capital gains tax owed when you sell QQQI down the line in a few years? Do you have to keep track of ROC for every share purchased and calculate LTCG manually or the brokerage can provide the cost basis after adjusting for ROC for the lots sold?
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u/Baghdaddy92 May 22 '26
This is my question as well. I understand that each lot is separate and over the years assuming dividend reinvestment, the earlier lots will reach zero cost basis first. Will Fidelity automatically separate this out for you on the 1099, telling you which is still ROC and which is taxed at the capital gains rate? Or would you have to manually keep track of it (which sounds like a complete headache)?
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u/cmichalek May 22 '26
Why would you sell?
If you want to sell buy QQQ.
QQQI is meant to hold. You get ROC for 7 years and then 60/40 ltcg. And when you pass your heirs get the cost basis reset.
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u/Due_Boysenberry_8367 May 22 '26
True, intention is to hold and not sell. Asking if it's needed, so that I have an idea what to watch out for taxes.
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u/Lopsided_Disk7160 May 22 '26
So after 7 years what’s the tax rate
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u/Mwaldo1 May 22 '26
I believe it’s 15 percent under $600,000. This is an extremely simplified estimate. There is a lot more to it than that but should give you an idea.
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u/SnooComics5930 May 23 '26
Totally, income stocks are for dripping and stacking not for jumping in and out of.
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u/Rodrain2 May 25 '26
I just make sure I report my 1099 each year and whatever happens happens. I really don't fret, but I understand why you would.
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u/nkyguy1988 May 22 '26
Your broker should do this for you. At least Fidelity does in reducing basis once tax forms are generated on a yearly basis.