31 Dec
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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2 Comments
Ron |
January 4, 20225:21 pmI’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 amThat’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!