[[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 TaxesRoyWant to learn more about taxes and investing? Then we have a deal for you!! The Motley Fool Investment Tax Guide is now available through Fool Mart. Be the first one on your block to own this masterpiece. There is still time available to do that tax planning (and tax saving) before the end of the year. So just click on this link (http://www.foolmart.com/market/product.asp?pfid=MF+013+I) to read more about this amazing collection of tax information. (Apologies for the shameless plug…but it is a pretty good book…if I do say so myself). In addition, if you would like to visit the Taxes FAQ (Frequently Asked Questions) area, click on http://www.fool.com/school/taxes/taxes.htm and you'll be right at the home page. Pay special attention to the "archives" section. Check it out. Finally, if you need to get to the IRS web site, click on http://www.irs.ustreas.gov to go directly there.
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