U.S. CitiesCity-Data Forum Index
Go Back   City-Data Forum > General Forums > Economics > Personal Finance
 [Register]
Please register to participate in our discussions with 2 million other members - it's free and quick! Some forums can only be seen by registered members. After you create your account, you'll be able to customize options and access all our 15,000 new posts/day with fewer ads.
View detailed profile (Advanced) or search
site with Google Custom Search

Search Forums  (Advanced)
 
Old 10-06-2020, 07:56 AM
 
4,020 posts, read 5,440,146 times
Reputation: 2679

Advertisements

hi everyone,
Quick question.
Assuming I sold 100k worth of stocks in April for 40k of gains, i would of course have to pay short term and long term cap gains on 40k depending on how long i qas holding those shares.

If i sell 50k worth of stocks in October at 15k of loss,

1. does my tax piability go down to 25k? (40k-15k)
2. Do i have to wait 30 days before i can buy that same stock if i want to be able to take that 15k loss?
3. Can i use the proceeds from the october sale to buy other stocks that are "unrelated" to the stock sold at a loss without impacting the losses i want to take?
Rate this post positively Reply With Quote Quick reply to this message

 
Old 10-06-2020, 09:06 AM
 
1,804 posts, read 863,969 times
Reputation: 2425
Quote:
Originally Posted by Thinking-man View Post
hi everyone,
Quick question.
Assuming I sold 100k worth of stocks in April for 40k of gains, i would of course have to pay short term and long term cap gains on 40k depending on how long i qas holding those shares.

If i sell 50k worth of stocks in October at 15k of loss,

1. does my tax piability go down to 25k? (40k-15k) No, your taxable gain goes down to $25k, your tax liability depends on s/t vs. l/t and other things
2. Do i have to wait 30 days before i can buy that same stock if i want to be able to take that 15k loss? Yes
3. Can i use the proceeds from the october sale to buy other stocks that are "unrelated" to the stock sold at a loss without impacting the losses i want to take? Yes
Answers in Bold
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-06-2020, 09:44 AM
 
4,020 posts, read 5,440,146 times
Reputation: 2679
Quote:
Originally Posted by SuiteLiving View Post
Answers in Bold
Thank you. Yes, apologies....i meant taxable gains.
Appreciate the feedback.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-06-2020, 10:22 AM
 
Location: USA
1,439 posts, read 477,225 times
Reputation: 3894
Generally ST G/L are applied to other ST G/L and LT G/L are applied to other LT G/L. So you have net ST G/L and net LT G/L.

Also, wash sales apply to tax deferred accounts even if there are no currently recognizable gains and losses.
Rate this post positively Reply With Quote Quick reply to this message
 
Old 10-06-2020, 11:45 AM
 
4,020 posts, read 5,440,146 times
Reputation: 2679
Quote:
Originally Posted by Lillie767 View Post
Generally ST G/L are applied to other ST G/L and LT G/L are applied to other LT G/L. So you have net ST G/L and net LT G/L.

Also, wash sales apply to tax deferred accounts even if there are no currently recognizable gains and losses.

In your opinion, is it smart to do what i proposed above?
I sold some shares of a stock in april at a large gain of about 40-70k (short term cap gains) and now i want to find ways of reduce the cap gains (especially short term) before jan 1 2021....
I'm holding 1400 shares of UAL in that same raxable account....and i bought it in april/may time frame....i still want to own UAL but thinking i will sell it now at a 15k loss......then wait 30 days....and buy back in. I think airlines will be flat for the next several months...so not much worry there.
Another option is to sell at the 15k loss and just buy another stock i care about.

What are your thoughts?
Rate this post positively Reply With Quote Quick reply to this message
Please register to post and access all features of our very popular forum. It is free and quick. Over $68,000 in prizes has already been given out to active posters on our forum. Additional giveaways are planned.

Detailed information about all U.S. cities, counties, and zip codes on our site: City-data.com.


Reply
Please update this thread with any new information or opinions. This open thread is still read by thousands of people, so we encourage all additional points of view.

Quick Reply
Message:

Over $104,000 in prizes was already given out to active posters on our forum and additional giveaways are planned!

Go Back   City-Data Forum > General Forums > Economics > Personal Finance
Similar Threads

All times are GMT -6.

© 2005-2021, Advameg, Inc. · Please obey Forum Rules · Terms of Use and Privacy Policy · Bug Bounty

City-Data.com - Contact Us - Archive 1, 2, 3, 4, 5, 6, 7, 8, 9, 10, 11, 12, 13, 14, 15, 16, 17, 18, 19, 20, 21, 22, 23, 24, 25, 26, 27, 28, 29, 30, 31, 32, 33, 34, 35, 36, 37 - Top