Should I take a $200k loss to offset profits?

Discussion in 'Trading' started by Sammel, Dec 29, 2015.

  1. sprstpd

    sprstpd

    Or just learn the tax code yourself.
     
    #11     Dec 30, 2015
  2. Take the loss. you still have a profit anyways overall. :thumbsup:
    you win some, you lose some.

    (holding onto a losing trade because you think it will turnaround...an amateur trader thing to do.)
     
    #12     Dec 30, 2015
  3. Xela

    Xela


    That suggests that it's not one you'd choose to buy, at its current price, under other circumstances and with plenty of available funds? But surely that's effectively what you'll be doing, if you keep it rather than selling it?



    I don't know and understand enough about your situation to be able to answer this question confidently, but from what you've said above, all my instincts are that I would sell. I look at it the other way round from you, I think: if I wouldn't want to buy the stock at its current price, why would I want to retain it rather than selling it? o_O
     
    #13     Dec 30, 2015
  4. Sounds like you have a good problem.
     
    #14     Dec 30, 2015
  5. From sprsptd...
    "... suppose you don't take the loss this year and your portfolio is flat the next year - well then you'd only be able to take $3,000 of that loss in 2016 (and have to defer the rest). So take the loss - it is a no-brainer. You get to take the full amount of the loss this year and you save on your taxes..."
     
    #15     Dec 30, 2015
  6. The time value of money is nothing, since interest rates are zero, so it doesn't really matter what year you realize a loss. Some slow learners still think in terms of 5%ish interest rates from years back.
     
    #16     Dec 30, 2015
  7. Xela

    Xela


    But it can sometimes be hugely significant in which tax-year you take a loss.
     
    #17     Dec 30, 2015
  8. piezoe

    piezoe

    It matters a great deal if he doesn't have trader status with the IRS, and it matters almost as much regardless. I'd take the loss against his gains now were I him. The present is always more certain than the future.
     
    #18     Dec 30, 2015
  9. clacy

    clacy


    What are the reasons for NOT booking a loss this year?

    If his only reason is because he "hopes" twitter will take off, that's a horrible strategy, IMO.

    I feel like you can't go wrong booking a loss as early as possible for in a taxable account. Always reduce your current taxes whenever possible.
     
    #19     Dec 30, 2015
  10. newwurldmn

    newwurldmn

    So OP has less than 24 hours to make a decision and he hasn't responded once. This is a troll thread.
     
    #20     Dec 30, 2015