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> I wanted to wait until it got as close to zero as possible before selling so that I could maximize my tax loss That is... not how finance works.
by reducesuffering 3y ago
> I wanted to wait until it got as close to zero as possible before selling so that I could maximize my tax loss
That is... not how finance works.
- latchkey 3y ago> Yea, right. You're saying that to the person who literally sold the very top.
- keithalewis 3y agoLook into "tax loss harvesting".
- UncleMeat 3y agoOutside of cases where you are trying to keep your AGI below a certain number, it is always better to have the cash than an equivalent loss, since nobody's marginal tax rate is 100%.
- reducesuffering 3y agoSelling at a $0 loss is always preferable to selling at a $1,000 loss, which takes $1,000 off your income, saving a marginal 43% rate of $430. You still lose $570. Tax loss harvesting is about capturing the loss and immediately moving into similar assets, so you book the income tax reduction now and postpone your eventual lower base sale. That is useful for things like similar ETF's, not unique assets like Marin Software equity.
- xboxnolifes 3y agoThey said maximize tax loss, not minimize losses. They also said it jokingly.