Captial Loss

[Justmakinmoney]

When is the last day to sell as stock and claim a loss on your taxes?

[aiki14]

Originally Posted by Justmakinmoney

When is the last day to sell as stock and claim a loss on your taxes?

Monday the 31st.

[netwrangler]

Originally Posted by Justmakinmoney

When is the last day to sell as stock and claim a loss on your taxes?

Originally Posted by aiki14

Monday the 31st.

Note: If you want to claim a loss, there is a waiting period before you can repurchase that stock to avoid running afoul of the Wash Sale rules.

Here is one link that deals with that issue.

I'm sure others on the forum can add to this post.

[wehttamsivad]

why wait until the end of the year? when a stock needs dumped it needs dumped. i've lost plenty of money this year.

[rozz]

Excellent question and reference article.

Thank you

[aiki14]

Originally Posted by wehttamsivad

why wait until the end of the year? when a stock needs dumped it needs dumped. i've lost plenty of money this year.

In a long term portfolio, prudent tax strategy is to dump losers just shy of one year and take profit after holding a year and a day, to best use cap gains regulations. This time of year I will jettison positions that are down, even if they don't reach my loss tolerance level, to offset some of my tax burden.
Sometimes a stock needs to be dumped even when it doesn't need to be dumped.
Hope next year is better for you.

[wehttamsivad]

That makes sense, and it’s something I should know for when I decide I can hold something that long.

My year wasn’t really that bad. I’ve just done some rookie things, and have gone though a very “check this out I’m bullet proof” stage in my trading life. I’m just one of those people that have to learn the hard way. Now I’m moving forward.

[netwrangler]

Originally Posted by wehttamsivad

why wait until the end of the year? when a stock needs dumped it needs dumped. i've lost plenty of money this year.

Originally Posted by aiki14

In a long term portfolio, prudent tax strategy is to dump losers just shy of one year and take profit after holding a year and a day, to best use cap gains regulations. This time of year I will jettison positions that are down, even if they don't reach my loss tolerance level, to offset some of my tax burden.
Sometimes a stock needs to be dumped even when it doesn't need to be dumped.
Hope next year is better for you.

In the world of Robert's Rules, I move the previous question.

While it is certainly true that "short-term" losers should be sold [at least] one-day shy of a year's holding, there is no reason for holding a "loser" that long if you are willing to recognize, at some earlier date, that the investment is, indeed, a "loser."

I suggest that a vote on "why wait" would carry.

Aiki points out the other side of the coin. At the end of the year, it may pay to classify some positions, for which some hope still remains, as "losers" and close them out — gaining, at least, some tax advantage. That's an exit that saves both money and ego.

[Luc1Grunt]

I think Aiki (my assumption) is talking about those longer term investments. Prudent tax strategy. Especially if the underlying findamentals warrant the change.

If you trade stocks on a daily or weekly basis and want to avoid the wash sale rules, do a search for "mark to market" accounting and trader tax status before you get really deep. If not, you may find yourself with much more tax liability than you realize.

Also filing quarterly allows you to avoid any "surprises" unless you continue to "safely" invest that liability until April.