The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: short term loss & long term gain? Date:  4/24/1997  1:58 PM
Author:  dmeredit Number:  3 of 127616


I'm not a tax expert, but have lived through some pain over the past couple of years getting my own taxes in order with my stock strategies. I can see a couple of things that you should consider;

* First, there is the wash sale rule. Chances are, your "losers" would still be your stock picks for next year. In this case you have to wait 30 days betwen the sale and purchase to count the sale as a loss. So, you would miss out on 30 days (1/12) of the growth potential.

* Again, taking the scenario where your "losers" are still the stocks for next year, you will be incuring 2 lots of commission charges. unless your loses are significant, the tax gain will be offset by your commissions.

Other than that, one of the only reasons to keep for 366 days to to get the profits taxed at the LT capital gains rate, so this would not apply to a loss. Of, course the stocks could rise the next day!

Hope this is useful & you might want to read answers to my next post, which is in a related area.
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us