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| Topic | Stock Topic 27 |
| Forceful_Dragon 04/22/21 10:13:12 AM #462: | Scenario: -It's December and you are up 50,000 with your investments. -You don't want to pay that much in extra taxes. -You have several long term plays that you are HODLing for better days because currently they are down, maybe even a lot. -So you sell and rebuy those long term plays. Maybe you spent 100,000 on something and it was currently worth 50,000 but you're convinced it will recover. So you sell for a realized 50k loss and then buy back the exact same position. Now, on paper, you are up 0 on the year and no longer have taxes to pay on your gains. Sure, down the road you would still have to realize that gain, but for the moment you have avoided it and that's good for you and bad for uncle sam. Now you might not have been cognizant thats the impact your losses were having, because you were just trying to get out of something losing to free up your money for something else. But that's the reason you have to avoid your losses for X amount of time, because otherwise it appears to be the type of behavior designed to cheat the system. --- ... Copied to Clipboard! |
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