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Financial Planning / Tax Strategies


Subject:  Re: Capital loss utilization Date:  12/27/2004  12:40 PM
Author:  JanSz Number:  74958 of 127613

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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