Message Font: Serif | Sans-Serif
 
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next
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: of 121095  
Subject: Re: Capital Long and Short Term Loss Tax selli Date: 12/4/1998 7:39 PM
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Recommendations: 0
[[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

Want 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.
Post New | Post Reply | Reply Later | Create Poll . Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (4) | Ignore Thread Prev | Next

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.
Advertisement