The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Tax loss harvesting possible with MLPs? REITs?||Date: 8/6/2013 12:34 PM|
|Author: froggies||Number: 118979 of 120432|
I'm going to start systematically tax-loss harvesting by selling my losing securities. I have a few simple questions about this.
From what I've read, tax-loss harvesting does not work with MLPs. One person online suggested it can actually accelerate taxation. Is this correct in most scenarios in which one would sell MLPs that are down?
I am wondering if REITs are also bad candidates for tax-loss harvesting. I'm guessing that's the case: it seems too easy to come up with a systematic method to harvest losses after distribution.
But if you have a regular stock that distributes qualified dividends, could you collect the dividend, sell the security at a loss, keep the dividend, and enjoy some tax advantages? Or are dividend distributions calculated into this, limiting your usable "loss"?
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