The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Capital loss utilization||Date: 12/27/2004 12:40 PM|
|Author: JanSz||Number: 74958 of 125208|
Someone will correct me if I am wrong, but this is my understanding:
How best to utilize my huge capital loses?
At the 3k /year it will take lifetime to write it off.
It is not just 3k per year. It is 3k in excess of your future capital gains. So if you have $1000 in capital gains in 2005, you will pay zero tax on that gain, get an additional $3000 in reduced taxable income, and lower your excess loss by $4000. Sure, it will take a while to use up your carry-over, but you will also not be paying taxes on gains along the way.
I may go back (partially) to a more risky way of investing that should produce larger gains with accompanying churning and taxes and lots of time spend tending the portfolio.
I am familiar with MI screens; some of them are quite profitable.
Being right about perceived vs. actual risk is a big task and I always have doubts about it.
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