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From what I recall, the losses are as real as the taxes. Even if you hadn't been able to net them off now they (in theory) reduce your future tax liability. Of
by fpgeek 14y ago
From what I recall, the losses are as real as the taxes.
Even if you hadn't been able to net them off now they (in theory) reduce your future tax liability. Of course, generally speaking it is unlikely to end up applying those losses to income taxed at that high a rate. And there are former coworkers of mine (who lost badly trying to hold onto ISOs) that refer to capital-loss carry-forwards that their children will inherit. Nevertheless, the reality is at least the tiniest bit less bad than it sounds.
- beagle3 14y ago> And there are former coworkers of mine (who lost badly trying to hold onto ISOs) that refer to capital-loss carry-forwards that their children will inherit. IIRC, there's a 7 year limit of how long you can carry capital losses - though there might be some way around that.... > Nevertheless, the reality is at least the tiniest bit less bad than it sounds. It is, for an investor who invests regularly, and a positive overall result - these things will cancel out. If you don't have a good investment opportunity every 3-5 years, it's basically as bad as I described. Small time investors (in my case, this was an investment in a friend's business), employees and entrepreneurs are worse off, although professional investors are, in fact, reasonably out of tax harm's way in this sense.