I'm thinking about selling some shares of stock that are long term and short term. They are in my ROTH account so there is no tax consequence, right?
I guess I have another question too. Let me know if this isn't the right board. I sold stock for a loss that in an IRA account and I want to sell some shares for profit that are in a taxable account. Can I use the loss to offset the gain when the loss is in an IRA account?ThanksRJ
They are in my ROTH account so there is no tax consequence, right? Sales and purchases within a ROTH have no tax consequences.
I guess I have another question too. Let me know if this isn't the right board. I sold stock for a loss that in an IRA account and I want to sell some shares for profit that are in a taxable account. Can I use the loss to offset the gain when the loss is in an IRA account? No.Do not trigger a wash sale by selling for a loss in a taxable account, and rebuying the same stock within the wash sale window within an IRA. I believe, the ruling is that the loss cannot taken.
This doesn't sound like a wash sale, I think it's 2 separate transactions.Transactions that occur within an IRA account don't need to be reported to the Internal Revenue Service (IRS). Buy and sell all the stocks and bonds you want to in the IRA --- there are no capital gains or capital losses that need to be addressed. What does need to be addressed are sales resulting in a distribution out of a traditional IRA. When this happens, the IRA custodian records the distribution by sending you and the IRS a Form 1099-R to determine the taxes. Read more: How to Report Sales in IRA Accounts | eHow.com http://www.ehow.com/how_7507940_report-sales-ira accounts.html#ixzz2KQxDZDty
This doesn't sound like a wash sale, I think it's 2 separate transactions.As Sister Mary Severe often reminded, "Mind your antecedent." Since all wash sales are two (or more) separate transactions, what does "this" mean?If you're referring to two transactions for the same stock, one in a taxable account and one in an IRA, there is indeed the possibility of a wash sale and a forever unrcognized loss. If you sell for a loss in the taxable account and buy the same stock in the IRA within the wash sale window there is a wash sale. The loss in the taxable account is not recognized and is totally useless in the IRA.Since the basis of individual investments in an IRA is meaningless for tax purposes, even if you do create a wash sale involving a sale in the IRA it's moot.PhilRule Your Retirement Home Fool
Thanks for the comments. The stocks in the IRA were an HG pick (IQNT) that I'd held long term, but finally sold for a huge loss. The stocks in the taxable account are from a completely different company (F), and I've held them for a long time because they did so well. Now I worry about selling them because of taxes on the profits. I haven't sold any shares for a profit yet. I was just wondering that if I did, could I use the loss in the IRA account to offset the selling for a profit if I decided to do so before I do my taxes.ThanksRJ
The stocks in the taxable account are from a completely different company (F), and I've held them for a long time because they did so well. Now I worry about selling them because of taxes on the profits. Would you like to hear about how I solved my problem about selling CSCO and incurring a short-term gain? Rode that puppy all the way down to a loss that provided me a carryover for a couple of years. Bad decision.As we like to say in these parts, Don't let the tax tail wag the investment dog (DLTTWID). If you have a better use for the current value of F, sell all or part of it.PhilRule Your Retirement Home Fool
You can't shelter the capital gain from sale of stock in your taxable account with a loss recognized in your IRA. If you want to sell F to lock in the economic gain, and you haven't sold any shares yet, then whatever you do will not impact your 2012 taxes. So, even if the loss in IQNT were in your taxable account, selling F would not result in an offsetting gain transaction in 2012. If you decide to sell F in 2013, you can offset the capital gain with capital losses either (1) recognized from sale of stock in your taxable account at a loss in 2013, or (2)carried forward from a prior tax year, if you previously sold shares at a loss in your taxable account and did not either use them to offset captial gain or shelter up to 3,000 of ordinary income in a prior year. If you plan to sell shares to recognize a capital loss in your taxable account 2013, you will not be able to use the loss if you buy the same shares back in the wash sale period, in either the taxable account or the IRA.
I appreciate the help!RJ
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