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Already realized this year, I have $6600 worth of LT cap gains, and $4000 worth of short term capital losses. This will be my first year to have to address this on a tax return, and I'm trying to do some last minute planning to reduce my tax bite.

I have some additional stock I plan on selling anyway to rebalance. I can have additional LT cap gains (I'll wait to next year to sell), and I have additional ST capital losses. I can sell some stock early and instead of LT cap gains I'll have ST cap gains to offset the ST cap losses. I don't have any LT cap losses available.

Does it make tax sense to sell a little early for ST cap gains to match my losses? What do you recommend?


Without knowing your entire income situation for the year I would say realize the additional ST gains to offset the ST losses - thereby leaving you with net LT gains.... hopefully all of which would be taxed at the lowest rates (10%)

A lot would depend on your projected income for next year.

Hope this helps.

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