Ended 2021 With A Tax Loss Sale

On YouTube I’ve told the story of how I became a dividend growth investor. 

It involved the stock Helios and Matheson (HMNY) of which I was still holding 10,000 shares.

These shares were down 99.82% or -$553.89. So I decided to pull the plug and sell.

Currently in the USA, tax laws allow for selling at a loss and offsetting any capital gains up to $3,000.

I may buy these shares back one day, but that day will have to be after 30 days, so as to avoid the wash rule.

I had sold Aurora Cannabis (ACB) earlier this month to realize another -$859 to offset capital gains.

And yes, the US Federal Government taxes qualified dividends as capital gains instead of income.

As far as 2021 is concerned, we will offset nearly $1,400 in capital gains, which ain’t too shabby!

Thanks for reading and never stop investing in yourself.

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Ron |

January 4, 20225:21 pm

I’m in a different boat. I’m retired and sold investments at a gain this year to max out my 0% qualified dividends and capital gain tax bracket. Granted, I sold assets with gains that put me out of the 0% tax bracket, but that was because I had a huge capital loss carryforward (from assets that a paid advisor put me in years ago) that I could use to offset those 2021 gains.

Russ |

January 5, 20221:17 am

That’s a really great point and something that not many of the investors I speak to are thinking of.

You should put out information being on the retired side of things!

Thank you for sharing, Ron!

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