The Motley Fool Discussion Boards

Previous Page

Politics & Current Events / Retire Early CampFIRE


Subject:  Re: On second thought, 2828 - Small Cap Issue Date:  1/27/2013  7:53 PM
Author:  TreyAnas Number:  668595 of 876031


Sorry for the confusion about harvesting losses. The idea is this: In the last quarter of the year, I assess my tax position, especially my capital gains position.

In order to minimize excess gains (those taxed at >15% rate) I might sell shares of investments in the red. I "harvest" the loss to offset realized gains in other investments. Then, I re-invest the proceeds in a different stock or fund (but one I believe is worthy).

I certainly never sold shares in a good company to buy shares in an inferior company. At least not on purpose!

Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us