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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...

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.

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