Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
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 ?

Rich
Arizona
Print the post Back To Top
No. of Recommendations: 2
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.

None. In fact, there's a tax cost to the loss since you will receive no tax benefit from it. (It reduces the amount of LTCG that you're not paying tax on anyway.) It will reduce the Federal AGI moving over to your state return, if that applies.

Phil
Rule Your Retirement Home Fool
Print the post Back To Top
No. of Recommendations: 0
Thanks Phil,

Rich
Arizona
Print the post Back To Top