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What's the best way to use up stock losses for the year?

ghostofposterspast 8,421 1,531 August 11, 2015 at 11:22 AM
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I'm sitting on a fairly large realized loss for the year in oil, yes I'm an idiot. What would be the best way to use up that loss. I can either let it go into my loss bank and then leverage out $3K a year or should I just sell and rebuy some winners to realize a gain to offset it. Literally, I would do an OTO order and do a pretty much instant sell/buy just to book the gain.

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#2
note that the $3k/yr "carries over" to future years.

So let's say you lost $9k. You write down $3k per year for 3 years.

OR

You can, say, write down $3k this year, then next year if you have a realized gain of $6k, that will wash out with the remaining $6k.
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The key point is that capital losses are losses only after you sell them. A stock sitting in your portfolio with a deflated price may cause you distress, but it doesn't do you any tax good until you dump it. (The sale of personal-use property, such as a car, doesn't get this favored tax treatment. Such losses can't be deducted as capital losses.)
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#5
Quote from Davidwilson12 View Post :
The key point is that capital losses are losses only after you sell them. A stock sitting in your portfolio with a deflated price may cause you distress, but it doesn't do you any tax good until you dump it. (The sale of personal-use property, such as a car, doesn't get this favored tax treatment. Such losses can't be deducted as capital losses.)
Ah... OK. That was never in question. I have losses as in booked losses. If you haven't sold it yet, then it's not a loss.
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