Message Font: Serif | Sans-Serif
 
No. of Recommendations: 0
Hello. I'm new to this board.

My husband and I file joint tax returns. We are in the 15% tax bracket. We have 2 stocks that have taken bad beatings. On one we have lost 80% (around $1600) and on the other, 67% (around $600.)

When I bought them, it was at the height of the bull market and I was just beginning to learn about the market. Actually, I like both of them and would like to keep a postion in them for the long term. But I do think it's going to be a good 5 years before they make something of themselves. (They are both in the same industry -- fuel cells.)

Since I like them both, and they are so low now, I had thought about adding to them to bring down our cost basis, but I really don't want to add to our positions in them (in fact, I'd like to lower our position in one) -- any extra money we have goes to the mutual funds in our Roth(s) and our Emergency fund. I don't see these two stocks going back up to the level at which I bought for a very very long time.

Would it be a good idea to sell them now, and take a capital gains loss on our taxes, and then just buy back later on? If so, how long do I have to wait until I buy them back?

***************************

Second Question:

I heard something on MSNBC about paying your property taxes early to get the deduction for this year, because the deduction will be at a better rate in 2001 than 2002.

We bought our first home this year. I've paid the taxes that are due in December. Our next taxes aren't due until April. If it were going to make that much difference on our taxes, I could high-tail it down to the Assessor's office on Monday and pay that April bill, but that doesn't leave us with much padding in our Money Market. If I wait until April, it gives me time to add my monthly investments to my MMkt account. Any comments on this?

Thanks in advance,
Caat

Print the post  

Announcements

Disclaimer:
In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.