Tax tip (stocks)...
- Thread starter st8
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Alien Labour
Registered Users (C)
Re: priyagc
priyagc,
I read the news that has been proposed to president Bush as the tax cut plan/investor confidence gain etc. I think the decision will be taken in Jan. The law may be applied in 2002 or 2003 year I am not sure. I am not getting the link. But you can search in google for this kind of news. Basically $3000 capital loss deduction is a law since 1978. They want to index it to inflation.
Guys please input some info if you have some latest news. I have lost big money in the stock market and think this is a opportunit to get something back from uncle SAM.
priyagc,
I read the news that has been proposed to president Bush as the tax cut plan/investor confidence gain etc. I think the decision will be taken in Jan. The law may be applied in 2002 or 2003 year I am not sure. I am not getting the link. But you can search in google for this kind of news. Basically $3000 capital loss deduction is a law since 1978. They want to index it to inflation.
Guys please input some info if you have some latest news. I have lost big money in the stock market and think this is a opportunit to get something back from uncle SAM.
This is what I remember reading but am not sure.
Due the continued down markets for the last 3 yrs, Bush or somebody wanted to increase the capital loss deduction to $8.25K.
Here is the link
http://www.ncpa.org/iss/tax/2002/pd101602b.html
Due the continued down markets for the last 3 yrs, Bush or somebody wanted to increase the capital loss deduction to $8.25K.
Here is the link
http://www.ncpa.org/iss/tax/2002/pd101602b.html
st8
Registered Users (C)
Originally posted by tyzh
Eitherway you only have two days to get it done. And what will happen in the following 31 days? Almost guaranteed to go up
So how about buy some more on Monday, sell in January and happily and proudly write a big-fat check to IRS
As I mentioned, the loss sale (and also adjustable gains) is only for those stocks that do not have any possible upside in the next month or so. If you do believe that your investments have potential upside in the next month, it would not be advisable to sell for gains/losses. As I said earlier, your mileage may vary.
Different stock investments work differently. You cannot always guarantee to go up. With war on the horizon (barring defence stocks), the momentum seems more downside than upside. Once again, each investment has its own merit to sell or buy. You would have to decide as the case may be and make a decision.
These 2 days will help just to cut some losses if you do not foresee any major changes. For example, if someone had bought Cisco at $40 (it is at $13 now), do you advise to load up more.
I would rather take a loss to adjust against taxes (since I do not foresee any major momentum for upside but I could be wrong) and buy back after 31 days. 
What would you suggest if I had CSCO at 5K loss and CTSH at 5K gain? There is investing and then there is smart investing.
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