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My portfolio is currently at a loss for the year. Mostly thanks to the world's worst FF picks (S, MO, GT, CAT). These were picked on 10/16/98; only CAT has made anything. :-(

I have four other stocks that have done well and the result is that the whole port is down about 1% for the year. The other four stocks have only been in the port since May '99.

If I sell off the whole mess in December, to rebalance things, what would the tax liability be?

How would I figure it out since I've held some for less than a year? Are the taxes calculated on a per-stock basis or on the total?


Each transaction would be reported separately on Scedule D (Form 1040) "Capital Gains and Losses". You would report short term gain/loss in Part I and long term gain/loss in Part II. The gains will offset losses but short term gains will be taxed at your ordinary tax rate. Securities held for over 12 months will be taxed at a maximum rate of 10% if you are in the 15% tax bracket. If you are in a higher tax bracket, the maximum tax on your long term gains will be 20%.

"Jack"
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