This is not exclusive to Andi.. But your logic mak
Post# of 29251
(Total Views: 296)
Posted On: 06/19/2018 6:39:39 AM
This is not exclusive to Andi.. But your logic makes no sense to me. Locking in a loss isn't a bad thing if you think you can buy shares back cheaper. Yes... a wash sale may get triggered, but that doesn't mean your dollar loss amount just disappears. It's added to your cost basis when you buy back lower...Thereby reducing the taxable amount of gains, when you sell that new lot, by the amount you lost initially.
Even further, triggering a wash sale also doesn't reset your 12 month clock on long term gains. Lots bought in January and sold for a loss in June... Then bought lower within thirty days for the exact same amount of shares...Would still be eligible for long term capital gains in January.
I think people have a hard time understanding this. The only situation where I think selling a stock at a profit to buy back lower isn't a good idea? When you don't want to reset that 12 month long term gains tax rate for just a slight discount on shares. In the OTC, that is generally not a concern since most won't hold for 12 months. Some of us are over six or seven months in ANDI, so selling a decent amount of shares at a profit could be tricky with the potential tax rate benefits.
Even further, triggering a wash sale also doesn't reset your 12 month clock on long term gains. Lots bought in January and sold for a loss in June... Then bought lower within thirty days for the exact same amount of shares...Would still be eligible for long term capital gains in January.
I think people have a hard time understanding this. The only situation where I think selling a stock at a profit to buy back lower isn't a good idea? When you don't want to reset that 12 month long term gains tax rate for just a slight discount on shares. In the OTC, that is generally not a concern since most won't hold for 12 months. Some of us are over six or seven months in ANDI, so selling a decent amount of shares at a profit could be tricky with the potential tax rate benefits.
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