Note that when you sell the stock, the loss can be used to reduce your income taxes in two ways. First, it reduces your other capital gains profits for the same tax year, or if the difference is a net loss, up to $3K per year can be deducted from your other income.If your net loss exceeds $3K, the remainder can be carried over to future tax years and written off against future gains or current income at the rate of $3K per year until depleted.The worst of this is the paperwork to make sure you claim the capital loss carry over.And note in some circumstances, if capital gains rates go up next year as some expect, the loss could be worth more next year in some situations.
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