11-01-2014, 11:16 AM
Good reminder, Dan.
I rarely sell, so don't think too often about this. And usually the stuff I hold is not volatile enough to consider this as a worthwhile strategy.
But the recent ARCP debacle may provide an opportunity. Let me make sure I understand the deal:
Right now I've got a substantial paper loss in ARCP in a taxable account. I think I am inclined to hold, but I can use the loss to my advantage.
Sell now, and book the loss. I don't have any capital gains to offset, because I have not sold anything else. But I can use the loss to offset up to $3000 of earned income. (This is still true, right??)
After 30 days, I can buy back into ARCP without any adverse consequence, if I want.
(Or I can learn my lesson and stick with the well-established blue chips!)
Am I overlooking anything important?
Thanks!
I rarely sell, so don't think too often about this. And usually the stuff I hold is not volatile enough to consider this as a worthwhile strategy.
But the recent ARCP debacle may provide an opportunity. Let me make sure I understand the deal:
Right now I've got a substantial paper loss in ARCP in a taxable account. I think I am inclined to hold, but I can use the loss to my advantage.
Sell now, and book the loss. I don't have any capital gains to offset, because I have not sold anything else. But I can use the loss to offset up to $3000 of earned income. (This is still true, right??)
After 30 days, I can buy back into ARCP without any adverse consequence, if I want.
(Or I can learn my lesson and stick with the well-established blue chips!)
Am I overlooking anything important?
Thanks!