Tax Loss Harvesting
You've got one last chance (Monday, December 31st, 2012) to sell some losers out of your taxable accounts. Just a couple points to be sure:
1) Make sure you have other income so you can actually use the losses.
2) Keep in mind you can only deduct up to 3000 in capital losses each year.
3) Remember that any capital gains you have are first offset against any capital losses, therefore only the remainder loss can be used against your ordinary income
4) Lastly, when choosing what to dump, be sure that you can not reacquire the position for 30 days due to wash sale rules, which means ideally you dont want that stock to have significant appreciation potential over the short term. This may be easier said than done to determine, but you may be able to prioritize your sells by using technical analysis...
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