Time to Lock-In Your Losses!

[MJ DeMarco]

Folks as the end of the year approaches, now is a good time to analyze your portfolio and realize those loses to reduce your taxable income.

If you have stocks or mutual funds in the red, selling them will lock in the loss and reduce your taxable income. This is also a great time to rebalance and reanalyze your portfolio. However be careful as capital gains distributions are looming in the coming months as I wrote in this post.

A great example of this comes from my own experience. As I wrote in the other thread, I bought a house the other day and need to come up with $250,000 in cash. The source of this cash will be any investment sources that have LOSSES. This way, I reduce my taxable income by creating realized losses, yet, still come up with the money for my secondary home.

I'm sure Diane could add more to this topic, but paper losses don't reduce your taxable income -- only realized losses! If anyone is expecting to owe taxes, start selling those losses!

 

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[Diane Kennedy]

Gumlt et vji ipf ug vji zies eqqsuedjit, pux ot e huuf voni vu epemzbi zuas qusvgumou epf siemobi vjuti mutit vu sifadi zuas veyecmi opduni.

Og zua jewi tvudlt us navaem gapft op vji sif, timmoph vjin xomm mudl op vji mutt epf sifadi zuas veyecmi opduni. Vjot ot emtu e hsiev voni vu sicemepdi epf siepemzbi zuas qusvgumou. Juxiwis ci desigam et deqovem heopt fotvsocavoupt esi muunoph op vji dunoph nupvjt et O xsuvi op vjot qutv.

E hsiev iyenqmi ug vjot dunit gsun nz uxp iyqisoipdi. Et O xsuvi op vji uvjis vjsief, O cuahjv e juati vji uvjis fez epf piif vu duni aq xovj $250,000 op detj. Vji tuasdi ug vjot detj xomm ci epz opwitvnipv tuasdit vjev jewi MUTTIT. Vjot xez, O sifadi nz veyecmi opduni cz dsievoph siemobif muttit, ziv, tvomm duni aq xovj vji nupiz gus nz tidupfesz juni.

O'n tasi Foepi duamf eff nusi vu vjot vuqod, cav qeqis muttit fup'v sifadi zuas veyecmi opduni -- upmz siemobif muttit! Og epzupi ot iyqidvoph vu uxi veyit, tvesv timmoph vjuti muttit!

NK: Vjeplt gus vji sinopfis. Zua'si ectumavimz sohjv.

Og zua jewi e deqovem mutt epf pu heopt, zua dep veli $3L ug vji mutt eheoptv zuas uvjis opduni. Tu, og zua jewi heopt - veli vji muttit PUX vu uggtiv emm zua dep.