So if we are looking at a higher tax rate all around and specially on capital gains and dividends would it not make more sense for those who do have losses to NOT sell this year and continue their investment loss for next year? I would rather pay this years lower tax rate on my gains and keep those stocks that have losses for the next couple of years to lower my taxable gains. Given stronger then usual market so far this year does anyone see that an underlying reason?
30K of my shares cost me almost $3.00/share and have considered tax loss selling myself. However, the IRS only allows $3,000/year in tax loss writeoffs. If you lose more than $3K on a stock you are allowed to carry over the loss to future years, again with a single year limitation of $3K that can be taken as a writeoff.
Personally, the small writeoff is just not worth it for me. I believe there are dynamics in play that would make me regret stepping over dollars to get to (writeoff) pennies. I stay long and strong.
tim u can offset all gains up to your loss in other stocks with the sale. you always buy back in 31 days which has made sense over the last few months . take advantage of losses, if you dont its like throwing more money away.just one more way of saving money.check with your accountant before ya dismiss the concept.maybe one of the board accounts could chime in.
I was referring to the scenario that you have gains on other holdings that would be offset by losses in others like Augme....If it was just for a recording the loss on a single stock then that would be an idiotic thing to do.
sirius, you are absolutely right. The tax rate on long-term capital gains next year will definitely go up to at least 20%. Either investors are getting poor tax advice, or maybe they plan to buy back the stock after 30-days because they think it's going to double or triple+ in value next year so they get the best of both worlds. A loss for 2012 that maybe they wouldn't have gotten at all.
Well in speaking to my CPA that was the decision that we came up with. Although, I am not selling any of my investments, winners or losers. I believe we are going to see a global recovery to strengthen in 2013 leading by U.S. Economy in housing. I have brokers as friends in the area and they are complaining of a very tight housing inventory which is leading to the new development sights and cranes that I am seeing going up now. As we all know, a housing recovery will bring with it a decline in unemployement rate which has a host benefits for our economy and fiscal issues. So I am letting them all ride. GTAL in 2013