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I know plenty of middle-class people using this technique as well, it's commonly called "tax loss harvesting". Close the "loophole" (not a loophole, it's just
by refurb 4y ago
I know plenty of middle-class people using this technique as well, it's commonly called "tax loss harvesting".
Close the "loophole" (not a loophole, it's just following the law as written) and it'll impact way more than just the wealthy.
- quickthrower2 4y agoIn australia they could say this makes you a professional trader and now it is all subject to income tax and more scrutiny.
- SamReidHughes 4y agoThe article's specifically talking about switching between nearly identical securities. Tax loss harvesting is more general.
- refurb 4y agoIts done the same way. You swap one security for another, almost identical one and take the capital loss.
- SamReidHughes 4y agoRight; I'm saying, many people tax loss harvest, most don't swap back in the same day to an alternate share class on the same company.
- jjeaff 4y agoI would wager it would affect middle class significantly less as a percentage of their total net worth than the wealthy. Considering that most middle class wealth is in their primary residence and not the stock market. I'm sure closing the loophole could be easily offset for then by slightly lowering income tax on the lower brackets.