Do all of you know about the "wash sale rule"? This past year was the first year that I actively did my own trading instead of paying a broker to do it for me. Well, little did I know about this rule and now I have a ton of gains that I had to claim and a bunch of losses that are stuck on my books until next year. After doing a lot of research, it was recommended that I sell all my stocks in November and do absolutely no trading on any of them until January and that I choose other stocks to trade during that time. As if it is not bad enough having to itemize every sale, then to have to carry losses over is just a complete mess. They should get rid of this rule, and I know I am not the only one that feels that way.
I heard that if you do a lot of trades, you could obtain "Trader Status" from the IRS. Your account is just marked to market at year end. No need to itemize everything. Also, you would be exempt from the Wash Rule.
Well, now you know. That's what "tax loss selling" is all about.
I had a total return last year of 17%, but I had losses in some BBB ETFs. I sold those to capture the losses and held on to some of my winners (utility preferreds).
So on Dec 31, I had some trading gains, but I also had a lot of unrealized gains, and some realized losses to offset them, so even it will look to the IRS as if I did a lot worse than 17%.
That's the goal: unrealized gains (stuff you're still holding) and realized losses (stuff you've sold). Although you should never base your stratey solely around tax concerns, if you look up in December and have a bunch of unrealized losses and a bunch of realized gains, you need to so some fancy footwork with the tax implications in mind.
I file my taxes only because the IRS owes me money. If I owe the IRS money, I will probably be as forgetful as Geinther too... If an intelligent individual like him forgets, everyone forgets. But there is a difference, you will probably fined huge if the IRS finds out that your are forgetful. When it comes to Geinther, the IRS becomes forgetful, they've forgotten to impose the proper fine on Geinther.
Besides that, Geinther is now 'stressing out' the financial investors along with the shorts. When we all got squeezed out, the crooks will jump in and ride C from $2 to $25. I wish I am Geinther's aid or a member of Obama's cabinet.
And guess what, even Greenspan, an old guy that should be residing 6 inch under, now also want a piece of it. He added fuel to the fire. We all now the more stress there is today, the quicker and higher C bounces bank.
God, where is justice?
Yes, I have been up, down and I was worried about my wife leaving me if I had lost everything. Obviously you know very little if you do not understand the wash sale rule when doing one's taxes. Why dont you go away rammer?