Replies to post #4725 on Investor Help (NO Ihub questions)

[bar1080]

Vastly more interesting tax situation is where the investor dies with a huge tax loss and no gains to offset it against, like the IHUB junk stock shareholder who killed himself about a year ago.

Poor family -- mom and three kids -- got no tax benefit even. Dad bought the stock for years, averaging down thru three reverse splits. It was perhaps the only stock he every owned. And he did everything wrong.

"As often happens, atrocious investing is compounded
by nonexistent tax planning. Generally, the sooner one
harvests losses the more valuable they are. Investing 101."

[Churak]

even to a spouse? Here, If, per your Will, you leave your assets to your spouse, they get it at your cost base. It's when the last dies, that the gain hits. Also here, capital losses (ie on stocks) can only be offset against capital gains. You can carry them back 3 yrs to offset against gains and future indefinitely to the extent not used. If you die, your losses can be used to offset other income - which is my tax planning.