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For tax year 2013 I have the "opportunity" to take a short term capital loss on my 2013 tax return. BEFORE Phil starts yelping at me about the "tax tail wagging the investment dog" I have a question?

Since I will be in the 15% marginal rate bracket with an estimated $17K left over before I reach the 25% bracket, all my projected LTCG will be taxed at 0%. Therefore, what tax advantage do I derive with taking the short term loss.

The stock with the short term loss is paying a decent dividend of 6% and IMHO has a 50/50 chance of recovering.

The way I see it ... is that the short term loss is a wash when netted against my LTGC ,which is taxed at 0%, and does not reduce my bottom line tax liability.

PIP Team .... What y'all say ?

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