Comments on: Wash Away Stock Losers With Winners

By: Srao

Srao — Fri, 25 Jan 2008 06:31:26 +0000

I would like to know how does this work in my case, say I have stock of some abc company and it is washer(-ver benifit). How can I offset that with any thing else. I don’t have any benifited stocks.

By: jim

jim — Wed, 26 Sep 2007 19:52:21 +0000

In order to take advantage of the tax benefit, you can’t buy back your losing stock within 30 days of selling it. If you do, then you surrender the tax benefit of being able to write off that loss. It prevents people from selling the stock and buying it back in immediately. It’s specific to the company.

So, if I lost 20% on shares of XYZ Company and I sell it today, I must wait 31 days before I can rebuy the shares of XYZ Company if I want to write off the 20% loss off my taxes. If I buy within 31 days, then I can no longer write off the loss.

I don’t know if there is a tax benefit to the student because I don’t have enough information but based on your scenario you would pay short term capital gains tax, which is your marginal tax rate.

By: Bilal

Bilal — Wed, 26 Sep 2007 19:23:30 +0000

I am confused about the wash rule… so, it is compulsory to every one that a person can not buy a new stock for 30 days if he sells a stock of the particular company. Is this rule true for a that particular stock company or you can not buy any stock within the 30 days time slot. 2nd question is that if I buy the stock and then sell it after a week, how much tax I have to pay on the gain… Is there any tax benefit to a student?

thanks

By: Financial Rounds

Financial Rounds — Wed, 28 Dec 2005 19:18:02 +0000

The Carnival of Investing

JLP at All Things Financial is hosting the 2nd Carnival of Investing. Go check it out – here are the ones I found interesting:

By: jim

jim — Fri, 23 Dec 2005 17:19:28 +0000

Yes you can carry it forward, read IRS Publication 550 and the Capital Loss Carryover Worksheet.

By: Uncle Foobar

Uncle Foobar — Fri, 23 Dec 2005 17:09:58 +0000

One thing:

The Losses carry over (right?) so a large loss can go on for years in your taxes.

Also: if you do incur large losses, talk to a CPA familar with traders; see:

http://www.greencompany.com/EducationCenter/GTTRecNOL.shtml

(note: not an endorsement or recommendation; the web site is
pretty thorough though for going from an investor to a trader)

Foob

By: FMF

FMF — Fri, 23 Dec 2005 16:11:30 +0000

I just sold a bunch of losers because I had many winners this year. It won’t offset all the gains, but did help a bit — and now I’m rid of those losing stocks!