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Selling losing positions to reap tax benefits

By Jason on Mon, 2006-12-25 22:44

I have a few positions I am currently down in since purchasing in recent months. I am definitely long in all these companies, and plan to add more. However, what are the thoughts on selling at years end to take advantage of capital loses to just buy more?

Any thoughts on this?

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George on Wed, 2006-12-27 17:50
Title: Tax loss selling

I personally don't like tax considerations dictating my stock trading decisions. However, if you believe that given your tax circumstances and the stock's current trading that you can sell and then buy more after the wash period (90 days I think) with a margin of safety, then it might be worth considering it. I don't think that situation comes up that often though.

Jason on Wed, 2006-12-27 19:28
Title: capital losses

Thanks for the comment George.

Likewise, I (mostly) never let a tax consideration dictate my trades. I was just curious in this situation.

I found a good article on Investopedia regarding capital losses and the 'wash' period.