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1234567k
LSU Fan
Baton rouge
Member since Nov 2015
1590 posts

re: Taxes. How do I minimize the pain?
Thanks for all of the info. I had suspicions about wash sales and quarterly taxes but my tax lady has been AWOL since May and I just learned from Facebook that she retired Quit.
She has not returned any of my phone calls.
I will be fine. Just need to find a reputable tax adviser.

And a shout out to those McNeese Cowboys.
This post was edited on 11/21 at 10:26 am


southernelite
McNeese State Fan
Dallas
Member since Sep 2009
51786 posts

re: Taxes. How do I minimize the pain?


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Jag_Warrior
Virginia Fan
Virginia
Member since May 2015
1913 posts

re: Taxes. How do I minimize the pain?
quote:

If you are talking about this year, your tax rates have not gone up yet.


Yeah, that was the point at which I stopped reading his post. As for future changes, any chance of a tax law change depends heavily on the GA runoffs.

I’ll try to say this in a nice way, but people REALLY need to understand basic American civics before making posts that suggest that we have some sort emperor or dictator, instead of a president who can only act on what congress initiates and passes. I’m not trying to be offensive, but it gets old. Our system is heavily based on SPQR (Senatus Populusque Romanus) - and let’s hope that remains the case.


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80
castorinho
Oklahoma Fan
13623 posts
Member since Nov 2010
71636 posts

re: Taxes. How do I minimize the pain?
quote:

Have you not been making quarterly estimated tax payments?

Good one, Russian.


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30
RedlandsTiger
LSU Fan
Redlands, CA
Member since Jan 2008
2573 posts

re: Taxes. How do I minimize the pain?
quote:

But i was just just hoping there was some way to delay the theft.


Yeah, file for an extension.


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Hopeful Doc
LSU Fan
Member since Sep 2010
12241 posts
 Online 

re: Taxes. How do I minimize the pain?
quote:

I still have a position in a stock that made and lost a lot of cash but it has made more than it lost. Should I sell before Dec 1st?




Goodness.


What is your goal?
How did you both make a lot and lose a little? Did you buy—> sell gain—> rebuy—-> sell loss, or are you talking about an unrealized skyrocket in value that crashed but is now a bit higher than your cost basis?


What is an arbitrary date to sell supposed to accomplish for you ? lock in this year’s short term gain rate instead of next year’s?


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dwr353
LSU Fan
Member since Oct 2007
1927 posts

re: Taxes. How do I minimize the pain?
With the risk of being called a dinosaur, consider being an investor rather than a trader. Dividend stocks you hold give you tax advantages as the dividend tax rate may be less than your normal tax bracket. This will also help you to hold on to your investment(not speculation) for longer than a year making LT capital gains and tax advantages when you sell. If you rather use mutual funds, the same can be accomplished.


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cgrand
New Orleans Pelicans Fan
HAMMOND
Member since Oct 2009
24256 posts

re: Taxes. How do I minimize the pain?
here is the simplest and really only way to minimize capital gains taxes on successful stock purchases...

1) don’t sell them prior to the 12 month anniversary of your purchase
2) don’t sell them after that either

let your winners run (and keep feeding them) and kill your losers quickly. You should not be investing in equities money that you will need to extract in the short or near term. That’s the point of investing

if you are trading and not investing then short term capital gains taxes are the cost of doing business, and should be included in your trading strategy


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USA
Member since 2001
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JLivermore
TBD Fan
Wendover
Member since Dec 2015
1143 posts

re: Taxes. How do I minimize the pain?
Are you trading out of a regular brokerage account or an IRA? Big big difference re: wash sales
This post was edited on 11/22 at 9:31 am


Hopeful Doc
LSU Fan
Member since Sep 2010
12241 posts
 Online 

re: Taxes. How do I minimize the pain?
quote:

Are you trading out of a regular brokerage account or an IRA?



I sure hope he isn’t bitching about gains of any sort inside an IRA.


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1234567k
LSU Fan
Baton rouge
Member since Nov 2015
1590 posts

re: Taxes. How do I minimize the pain?
quote:

here is the simplest and really only way to minimize capital gains taxes on successful stock purchases...


quote:

if you are trading and not investing then short term capital gains taxes are the cost of doing business, and should be included in your trading strategy


I am trading.
Not investing.
Now that I have something to protect, I will move toward investing and learning about all the tax laws and jargon.
I did know about the 401k route and did increase contributions to the max.
I did not know about the 12 month anniversary, long term vs short term gains.
Thanks for the education.


Hopeful Doc
LSU Fan
Member since Sep 2010
12241 posts
 Online 

re: Taxes. How do I minimize the pain?
quote:

I am trading.
Not investing.


Here is a fairly useful article on Tax loss harvesting


But while trading, as said above, you’re going to be making regular income on the sales, for all intents and purposes. Uncle Sam rewards you in your risk by sharing some of your losses (see above). I understand Robin Hood does a decent job at helping you track this, but you need to keep track of all realized gains/losses.


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Brettesaurus Rex
New Orleans Saints Fan
Baton Rouge
Member since Dec 2009
37160 posts

re: Taxes. How do I minimize the pain?
quote:

re: wash sales

Wash sales aren’t really a big deal unless you’re trying to hold the position long term though right? As soon as you sell your original re-added wash sale would just get realized again


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SalE
LSU Fan
At the beach
Member since Jan 2020
401 posts

re: Taxes. How do I minimize the pain?
Trade often enough for your platform to designate a Pattern Day Trader...IRS Form 3115


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Grassy1
LSU Fan
Member since Oct 2009
5023 posts

re: Taxes. How do I minimize the pain?
quote:

have dumped them. But please explain the surprises.
I still have a position in a stock that made and lost a lot of cash but it has made more than it lost. Should I sell before Dec 1st?




Does December 1 have significant ramifications? It'll be here Tuesday.

I've got one loser that could help me tax-wise. If only I had a crystal ball.


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tirebiter
LSU Fan
Member since Oct 2006
6904 posts

re: Taxes. How do I minimize the pain?
So federal monetary policy and stimulus to help stabilize markets and businesses and continuing cheap money provided you no help with market gains?? Maybe you should be happy to pay some taxes? Or learn how to take losses to offset gains in taxable accounts? Or only trade in tax sheltered in accounts.


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