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|Subject: Re: On second thought, 2828 - Small Cap Issue||Date: 1/27/2013 7:53 PM|
|Author: TreyAnas||Number: 668595 of 861045|
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!
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