The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Long Vs Short Term losses||Date: 8/9/2001 12:39 AM|
|Author: Charlie48K||Number: 53191 of 124991|
Is it more foolish to take $3000 off AGI in short or long term losses?
Have not realized any losses yet.
It is most foolish to worry about long term gains, or short term gains. :)
If you have any gains or losses at the end of the year, the short term gains are set against the short term losses. Same with the the long term stuf. The resultant sort term and long term gains and losses are added togher and the net is looked at. If you still have a loss, you can take $3000 against ordinary income, excess above that is carried forward.
If you have a capital loss, either long or short, like I do now without a short term or long term gain, it goes against my income. Reducing my income and saving me taxes. Short term gains are taxed at the same rate a normal income, so, my best tax situation is to try to avoid long term gains this year.
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