Deep value investing stratergy, $30k in 16 stocks and tracking performance

[Lowexpectations]

Originally Posted by ThisDamnLife

Why is only 40% of the loss deducted?

Because it not being done correctly

1500 ltcg - 500 stcl = 1000 ltcg


1000 ltcg = 1000 ltcg

[ThisDamnLife]

Originally Posted by Lowexpectations

Because it not being done correctly

1500 ltcg - 500 stcl = 1000 ltcg


1000 ltcg = 1000 ltcg

I thought this is how it shall be

port1: 1000 - (1000 * .2) = 800
port2: 1500 - (1500 *.2) - 500 = 700

So, portfolio1 (etf) still gives better bang for the buck.

[bigboibob]

Originally Posted by ThisDamnLife

Why is only 40% of the loss deducted?

Sold at short term capital loss

[Lowexpectations]

Originally Posted by ThisDamnLife

I thought this is how it shall be

port1: 1000 - (1000 * .2) = 800
port2: 1500 - (1500 *.2) - 500 = 700

So, portfolio1 (etf) still gives better bang for the buck.

They are taxed the exact same. You add your ltcg and add your stcl. Since the gains are more than the loss you subtract the losses from the gains to have 1k in ltcg either way.


The example was a poor one really.

Let's say you have a portfolio that you've already realized 5k in gains and towards year end your Xom position had 5k loss, you sell to net your gain loss for the year at zero and use the proceeds to buy CVX


You could remove the equity names and replace them with SPY/VOO and you can also flip it and say you already had realized losses and you harvested gains to net to zero while reinvesting in something similar

[Lowexpectations]

Originally Posted by bigboibob

Sold at short term capital loss

Your loss reduces the outstanding gains for the year in your scenario before calculating tax liability

[ThisDamnLife]

Originally Posted by bigboibob

Sold at short term capital loss

How can it be a short-term if all of them 've been held for the same time period of 1yr?

[Lowexpectations]

Originally Posted by ThisDamnLife

How can it be a short-term if all of them 've been held for the same time period of 1yr?

That part is really irrelevant, the losses short or long term would net against the gains

[bigboibob]

You're right. It would only matter if short term capital loss exceeded long term capital gains

[Lowexpectations]

Originally Posted by bigboibob

You're right. It would only matter if short term capital loss exceeded long term capital gains

But that would be true in either case and if losses exceeded gains you didn't perform very well