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Financial Planning / Tax Strategies


Subject:  Re: Matching Gains to Losses Date:  4/12/1999  10:44 AM
Author:  Bob78164 Number:  14460 of 127614

SammiSampson writes:

Can long-term losses be used to offset short-term gains?

I have some long-term carryovers and some stocks that I think will undergo pullbacks before long.

If the long-term carryovers can be used to offset short-term gains, it would probably be worth my while to sell and rebuy, rather than toughing it out through a pullback.

I reply:

Yes, as you can confirm by walking through Schedule D. But your plan may run afoul of the wash sale rule, which forces you to defer losses incurred after a sale for a loss if you purchase the same securities within 30 days before or after the sale for loss. --Bob
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