Medicine Man Technologies Inc (SHWZ)

[Fallingknife75]

Tax loss selling can be very useful to reduce ones overall tax burden, especially if you are selling a stock at a loss that you do not intend to repurchase. If you are planning to re-enter a position later then you need to be aware of the "Wash Sale Rule". The links below can help understand how it works.

https://www.investopedia.com/terms/w/washsalerule.asp

https://www.schwab.com/resource-center/insights/content/a-primer-on-wash-sales

Technically the 30 days prior and 30 days after the sale come into play but the prior 30 days part always confuses me. If I sell a stock at a loss for tax purposes but intend to repurchase it I will annotate my calendar 31+ days from the sale so I remember when I can repurchase it again. Within the 30 days after sale you cannot repurchase it in any other accounts either (IRA's etc.) and claim the deduction. It can be useful but you have to be careful as well, I typically only do tax loss selling on companies I don't intend to repurchase and therefore don't have to worry about the Wash Sale Rule.

With companies like SHWZ that have a high potential for a quick turnaround, I would rather just hold them than risk not being able to get back into my position if a move started.

Hope this helps,

All the best,

Knife