Suppose I bought a stock 364 days ago, and I have a loss.
Is it better to sell now, and get a short-term loss, or wait two days and get a long-term loss?
Assume I've got both short-term and long-term gains that could be offset.
2007-10-16 04:28:17 · 6 answers · asked by cosmo 7 in Business & Finance ➔ Taxes ➔ United States
Assume, too, that I really want to sell---I believe the company's long-term prospects are not good, and I can better invest the money elswhere.
2007-10-16 04:45:07 · update #1
it is better to sell now because the loss will offset short term gains first. if the total of all your gains is more than all your losses you would rather have long term gains leftover because they are taxed at a lower rate
2007-10-16 05:01:34 · answer #1 · answered by robert 1 · 1⤊ 0⤋
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RE:
Short term capital loss vs. long term capital loss?
Suppose I bought a stock 364 days ago, and I have a loss.
Is it better to sell now, and get a short-term loss, or wait two days and get a long-term loss?
Assume I've got both short-term and long-term gains that could be offset.
2015-08-15 09:02:08 · answer #2 · answered by Rosita 1 · 0⤊ 0⤋
A short term loss is more valuable because it offsets more tax. Ordinary income tax is higher than long term capital gains rate of 15%
2007-10-16 12:16:22 · answer #3 · answered by William H 5 · 1⤊ 0⤋
I don't thjink it will matter since you've already got lt gains and losses for it to go against. If you hold on to it until it becomes worthless, then you may take the loss all in one year. However, if your goal is just cut your losses and get out while you can, then just sell when it feels right to you.
2007-10-16 04:40:17 · answer #4 · answered by Sherri M 1 · 0⤊ 0⤋
You can deduct up to $3000 a year after you offset your gains with your losses. It's still important to put them in the correct category. However, since it is less than $3000 and you deduct everything in the current year, I don't believe the IRS will make a big deal out of it.
2016-03-13 06:05:45 · answer #5 · answered by Anonymous · 0⤊ 0⤋
Just wait it out till it gets higher again; do NOT sell while it's lower than what you paid for, unless you're getting news that it's about to close. Otherwise, just hold, and you won't lose anything anyways.
If you're experiencing a loss and you believe that the company is most unlikely to even close, that's the time to BUY, as it is cheaper, or at least when it gets low enough.
2007-10-16 04:33:18 · answer #6 · answered by joschoa 2 · 0⤊ 4⤋
always go for the long term loss.
2007-10-16 04:31:02 · answer #7 · answered by Anonymous · 0⤊ 3⤋