Every year, thousands of investors in stocks and mutual funds miss the benefit of tax loss selling. Tax loss selling is when you have the government share your investment losses by reducing your taxes.
If you bought a stock at 20 and it’s now 15, even if you plan to hold it for the long term, sell it now! By selling, you can report a $5 loss per share on your tax return. Take a deduction (or offset other stock gains) and reduce your tax bill or receive a refund. You can then buy the shares back in 31 days and keep them as long as you like.
If you just sit there with your paper loss, the government will not share the loss with you. You must actually make a sale to capture the tax benefit.
If you miss this each year, you throw away a tax savings and pay more taxes than necessary. If you want to pay as little tax as possible, bring in your November investment statements and original purchase prices as soon as possible. After December 31, this tax break is lost for another year and you may overpay your taxes once again. Please call us immediately at 925-935-5488 to set an appointment time.