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Author: harnett Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 121100  
Subject: Capital Long and Short Term Loss Tax selling? Date: 12/4/1998 9:46 AM
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I'm getting ready for TAX selling some my lossers. I'm trying to figure my stradigy. I CAN have both Long and Short Term Loses. I HAVE both Long and Short Term GAINS
obviouly I want to minimize my taxes.

QUESTIONS???
1. Can I deduct Long Term Losses from higher taxed Short Term Gains and NOT deduct them from my Long Term Gains?
2. Can I deduct Short Term Losses from my Long Term Gains even if I don't have many Short Term Gains?

Anyone??
Dave Harnett
dharnett@mediaone.net
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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6758 of 121100
Subject: Re: Capital Long and Short Term Loss Tax selli Date: 12/4/1998 7:39 PM
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[[I'm getting ready for TAX selling some my lossers. I'm trying to figure my stradigy. I CAN have
both Long and Short Term Loses. I HAVE both Long and Short Term GAINS
obviouly I want to minimize my taxes.]]

Got it...

[[ QUESTIONS???
1. Can I deduct Long Term Losses from higher taxed Short Term Gains and NOT deduct them
from my Long Term Gains?]]

Nope. At least not at first. What you are required to to is to net out your short term gains against your short term losses. Then, you net out your long term gains against your long term losses.

Then you take both of those results and net them against each other. So it is very possible that some of your short term losses will offset some of your long term gains. This is the worst thing that can happen to you, but something that you might have to live with.

[[ 2. Can I deduct Short Term Losses from my Long Term Gains even if I don't have many Short
Term Gains? ]]

Again, eventually...based upon what I told you above.

Ideally, you want to totally offset your short term gains with short term losses, and, if at all possible, try to leave your long term gains in tact. Since your long term gains are taxed at a preferred tax rate, you want to keep them. And since your short term gains are taxed at your marginal tax rate, you want to get rid of 'em.

We discuss this "netting" issue in much greater detail in The Motley Fool Investment Tax Guide. You might want to check it out.

TMF Taxes
Roy

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Author: harnett Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6796 of 121100
Subject: Re: Capital Long and Short Term Loss Tax selli Date: 12/6/1998 1:56 PM
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TMF Taxes
Roy Thanks, I do have the MF Investment Tax book. It's great or I remember it is. I loaned it to my son, and haven't seen it since. Perhaps if I buy him the Tax book for Christmas, I can give him a card inscribed "MF Investment Tax Book Already Delivered, love Dad". Then I'll keep his brand new copy!!!
thanks again.
dave h

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Author: TMFTaxes Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: 6819 of 121100
Subject: Re: Capital Long and Short Term Loss Tax selli Date: 12/7/1998 11:02 AM
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[[TMF Taxes]]

Yo!! Dave!!!

[[ Roy Thanks, I do have the MF Investment Tax book. It's great or I remember it is. I loaned it to
my son, and haven't seen it since. Perhaps if I buy him the Tax book for Christmas, I can give him
a card inscribed "MF Investment Tax Book Already Delivered, love Dad". Then I'll keep his brand
new copy!!!]]

LOL!!!!! This is VERY funny...even more so since the same thing has happened to me a number of times in the past. And I LOVE the idea of the Christmas "card". If you don't mind, I'm going to steal your idea for two books that I have "loaned" out and will likely never see again. I just LOVE it!!!

<< thanks again.>>

That YOU for the Holdiay Gift Giving suggestion...

TMF Taxes
Roy

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