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Posted On: 03/26/2022 2:21:00 PM
Post# of 85917
Re: riskreward007 #63696
Some may be wondering? Why use "Choose Lot" to sell some short-term shares when these normally result in higher taxes?
This has to do with offsetting losses (from other stocks) that you can carry forward from year to year.
Stock losses are categorized by "short-term losses" and "long-term losses" and can be offset by short-term and long-term profits.
For example: If you have $10k in short-term stock losses and $20k in long-term losses carried forward on your taxes, then you can offset these with $10k in short-term stock profits and $20k in long-term profits.
That's the general idea (although there is more to this).
This has to do with offsetting losses (from other stocks) that you can carry forward from year to year.
Stock losses are categorized by "short-term losses" and "long-term losses" and can be offset by short-term and long-term profits.
For example: If you have $10k in short-term stock losses and $20k in long-term losses carried forward on your taxes, then you can offset these with $10k in short-term stock profits and $20k in long-term profits.
That's the general idea (although there is more to this).
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