11-01-2014, 05:18 PM
(This post was last modified: 11-01-2014, 05:19 PM by earthtodan.)
That's the idea. I'm fuzzy on the details, such as whether you can offset taxes on dividends received as well, and whether you can roll over unused losses to the next year. So I guess this calls for some Googling.
I only hold REITs in my Roth IRA, but ARCP is a good example if you hold it in a taxable account. You can sell it and wait 30 days (or maybe 31?) and then get back in. Of course you take on the risk of the price moving up in the time you don't own it (or the benefit of it falling further).
In the case of SNY, I think it's oversold and the price could easily move up over the next 30 days, so instead of selling, I actually doubled down. I have to wait the month, because the 30 day rule works in both directions, but after that I can sell the higher priced tax lot and book the loss, thus lowering my cost basis on the position. Of course, your broker has to let you select specific tax lots.
I only hold REITs in my Roth IRA, but ARCP is a good example if you hold it in a taxable account. You can sell it and wait 30 days (or maybe 31?) and then get back in. Of course you take on the risk of the price moving up in the time you don't own it (or the benefit of it falling further).
In the case of SNY, I think it's oversold and the price could easily move up over the next 30 days, so instead of selling, I actually doubled down. I have to wait the month, because the 30 day rule works in both directions, but after that I can sell the higher priced tax lot and book the loss, thus lowering my cost basis on the position. Of course, your broker has to let you select specific tax lots.