While I had nothing better to do at such boring day in a market I run some numbers and what I come up with. In my imaginary example I assumed that I'm an investor who collected 1000 shares of ELN at average cost of $25 considering my old and recent purchases. I also assume that I'm in 35% overall tax bracket.
If I sell ELN now, I'll realize 15k loss and in exchange will receive 5.25k tax credit which is equivalent of cash for most people anyway.
However, I'm a strong beleiver in ELN's future price appreciation and see 30+ within a year or so, but not within next 7 month till end of this fiscal year. I also know (reasonably assume) that within one month nothing could drastically change ELN's price structure (AGM is 2 month ahead and SEC thing is X-month ahead). Therefore, I'll use proceeds from the sale (10k) to buy it back 30 days later. Even if price will be 25% higher then, I'll end up with 800 shares instead of 1000.
What happened? I lost 200 sh, but gained 5.25k i.e. I sold my 200sh at 26.25 and reduced my cost basis from 25 to 12.5, which in turn will give me more flexibility in my future selling decision.
I think that many LTI could use this line of thinking now, due to the fact that in Nov-Dec they will compete with huge crowd of tax-loss sellers, while now they virtually have no competition.
<<you can only take 3000 dollar tax loss a year... >>
You could use unlimited amount of carryover losses to offset current gains. However, if your schD consist of losses only it will be nothing to offset THIS year. But, if you expect gains down the road (otherwise why would you be here) carryovers wouldn't hurt.