10-31-2014, 10:57 AM
(This post was last modified: 10-31-2014, 10:59 AM by earthtodan.)
It's time to start thinking about harvesting tax losses. There's still 2 months to go, which leaves plenty of time for 30 day windows to avoid wash sales (for US based investors).
30 days is important if
a) you want to sell, wait, then rebuy
b) if you want to buy, then sell. You still have to wait 30 days after buying your lower priced shares before selling your higher priced shares. I'm going to employ this strategy so I don't have to relinquish any positions for a month.
I'm using this strategy with SNY. They tanked after posting a worrying earnings report suggesting an insulin price war in the US market, and then ousting the CEO for no good reason, and now I have a big unrealized loss. I still like the company and think it's way cheap, so I bought the dip, and I'll sell my higher priced shares in a month. I'm fully invested now, so I'm actually going to do this on margin.
I went overweight the offshore drilling industry earlier this year before those stocks tanked, so I'm going to be rotating money around in those stocks too. I'm not getting out of them, because selling low and moving on would just be a rookie move. It's safe to say they move as a sector with the price of oil, so I could move money from one to another and not have to wait 30 days. The yields are still great as long as they don't get cut.
Who else is harvesting?
Disclaimer: I am not a tax advisor, and anything I say should be used for entertainment purposes only.
30 days is important if
a) you want to sell, wait, then rebuy
b) if you want to buy, then sell. You still have to wait 30 days after buying your lower priced shares before selling your higher priced shares. I'm going to employ this strategy so I don't have to relinquish any positions for a month.
I'm using this strategy with SNY. They tanked after posting a worrying earnings report suggesting an insulin price war in the US market, and then ousting the CEO for no good reason, and now I have a big unrealized loss. I still like the company and think it's way cheap, so I bought the dip, and I'll sell my higher priced shares in a month. I'm fully invested now, so I'm actually going to do this on margin.
I went overweight the offshore drilling industry earlier this year before those stocks tanked, so I'm going to be rotating money around in those stocks too. I'm not getting out of them, because selling low and moving on would just be a rookie move. It's safe to say they move as a sector with the price of oil, so I could move money from one to another and not have to wait 30 days. The yields are still great as long as they don't get cut.
Who else is harvesting?
Disclaimer: I am not a tax advisor, and anything I say should be used for entertainment purposes only.