writing off loses

BIGBOI · 10-18-2009, 03:09 AM

Okay. It is getting that time of the year. Tax time..

I plan on getting out of a stock towards the end of the year and waiting the 30 days and taking the lose in the stock and writing it off on my taxes. I know I made about 10k in profit and going to pay 2500 I belive in taxes (25% capital gains tax)...

How can I take a lose on another stock to cover my gains? I will get back into the stock next year or even be in cash and wait for the market to hopefully crash again.

How does this work? I know larger fund managers uses this method so they avoid taxes but get back into the stock in the next year.

Anybody hear of doing this?

**m0nk3y** · 10-18-2009, 09:20 AM

You'll have to exit the position at a loss and remain out of it for a while... I can't remember the rule, but it's not a 'this year/next year' thing. Easiest way to do this is to get into a similar position with another symbol in the same industry with the same outlook... Your best bet would be to talk to an accountant.

BIGBOI · 10-20-2009, 10:55 AM

I am pretty positive it is 30 days.

I just want to avoid paying the 2000 in taxes

10-18-2009, 03:09 AM	#1 (permalink)
BIGBOI Registered User	writing off loses Okay. It is getting that time of the year. Tax time.. I plan on getting out of a stock towards the end of the year and waiting the 30 days and taking the lose in the stock and writing it off on my taxes. I know I made about 10k in profit and going to pay 2500 I belive in taxes (25% capital gains tax)... How can I take a lose on another stock to cover my gains? I will get back into the stock next year or even be in cash and wait for the market to hopefully crash again. How does this work? I know larger fund managers uses this method so they avoid taxes but get back into the stock in the next year. Anybody hear of doing this?

10-18-2009, 09:20 AM	#2 (permalink)
m0nk3y pwns.	You'll have to exit the position at a loss and remain out of it for a while... I can't remember the rule, but it's not a 'this year/next year' thing. Easiest way to do this is to get into a similar position with another symbol in the same industry with the same outlook... Your best bet would be to talk to an accountant.

10-20-2009, 10:55 AM	#3 (permalink)
BIGBOI Registered User	I am pretty positive it is 30 days. I just want to avoid paying the 2000 in taxes