Cubsfan

Are there any special things that people here do at the end (or beginning) of the year? Re-evaluate 401K participation and selections, examine the budget, put money into an IRA, put finances into Quicken, etc...?

dbax791

Sell any stock at a loss that you don't wish to keep, and take the deduction.

If you are willing to donate money to charity, do so before the end of the year to get the tax deduction.

attgig

with the stock that you're selling at a loss...I think if you sell a stock you're selling with profit during the same year, then you don't have claim that profit as income.

so, say that you know you have a stock that you lost 5k on and it can't really get any worse (i.e., you're confident they're not going to declare bankrupcy), keep it until you're ready to sell a stock where you're making some money.

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dbax791

I'm a bit rusty on tax laws, but generally capital gains wash against each other. If you have a stock that loses money, that offsets the tax liability on profits.

However, if you only have a pure loser, you can deduct up to a certain limit ($3K/year????) straight off your tax liability.

brainsmile

sounds right....

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"Nobody beats Vitus Gerulaitis 18 times in a row." - Vitus Gerulaitis on beating Jimmy Connors after 17 failed attempts.