Triple leveraged drawdown selling rule

[ChadR]

(04-27-2021, 02:41 PM)ken-do-nim Wrote: Exactly.  So gosh, $8000 short term cap gains + $3000 at least in dividends this year = $11,000 I have to pay full taxes for, x .35 = $3,850 in taxes.  I usually get a $2k refund so this will put me in the hole as is.  Yeah, doesn't look like I get to sell any company stock this year.  And I probably need to start reading up on Estimated Tax Payments.

If the dividends are qualified, you get the LTCG rate instead of the marginal rate.  Tax bill might not be as high as you are thinking.  Check to see how much of your $3k of dividends are qualified dividends.

[ken-do-nim]

(04-06-2021, 12:48 PM)vbin Wrote: Sold ABBV, TEVA, BMY puts.

(04-27-2021, 05:40 PM)ChadR Wrote:

(04-27-2021, 02:41 PM)ken-do-nim Wrote: Exactly.  So gosh, $8000 short term cap gains + $3000 at least in dividends this year = $11,000 I have to pay full taxes for, x .35 = $3,850 in taxes.  I usually get a $2k refund so this will put me in the hole as is.  Yeah, doesn't look like I get to sell any company stock this year.  And I probably need to start reading up on Estimated Tax Payments.

If the dividends are qualified, you get the LTCG rate instead of the marginal rate.  Tax bill might not be as high as you are thinking.  Check to see how much of your $3k of dividends are qualified dividends.

I have much to learn.  Thanks!  I'll spend some time reading up on this.

[ken-do-nim]

Apparently, none of my REIT-based dividends are qualified. That's actually a substantial amount. ORC, NLY, RA, & others are all REITs. Good to know.

[ChadR]

You might want to buy your REITs in your retirement accounts. Help cut down on your tax bill. Have growth and low dividend payers in your taxable account.

[ken-do-nim]

For anyone new reading this thread, I ultimately abandoned the set sell points for the triple-leveraged funds. What I found happened was that the STOP sales worked; got me out of the stock, but then I wasn't able to get back in for the big run-up that followed. Instead, I simply abandoned the ETFs I couldn't trust. The ones I find trustworthy are:

• CURE
  
• DDM
  
• DFEN
  
• DRN
  
• FAS
  
• RETL
  
• SOXL
  
• SPXL
  
• TECL
  
• TQQQ
  
• WEBL
  

When I say trust, I mean for typical (non-pandemic) drawdowns, they bounce back quickly. It's noteworthy that DFEN and DRN, for instance, still haven't come close to reaching the prices they were at pre-covid, though they've been steady risers since then. All the others are at or near all-time highs.