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Subject:  Re: Selling a stock at a loss for Tax deduction Date:  12/22/2011  11:04 AM
Author:  irasmilo Number:  114440 of 127753

I am thinking about selling one of my losing stocks. It was a poor purchase - I bought it too high and it has gone down ever since. I was thinking I should sell it before the end of the year and then I could take it as a loss on my income taxes? Anything I should be aware of in doing this? I do not plan on buying back into this stock or anything like that. Thanks for any advice.

First, your loss will be netted against any gains you had for the year. (I'll ignore for now the question of long-term vs. short-term because it doesn't affect the final result.) If you still have a net loss, you can use up to $3000 to reduce your other income. Any additional loss gets carried forward to next year's tax return.

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