Replies to post #109 on Tax Questions

[MrBankRoll]

Luckily I only gambled $2,700.00 on that POS.

I don't think I wrote off anything the first 2-3 years after the 2000 market implosion, hoping for a recovery in my many turds.

Some did, some didn't.

It is now time to flush as much as I can. It's a great opportunity and I'm tired of the stench.

Thank you for your help and Merry Christmas!

[MrBankRoll]

Another question oh wise man.......... Just got off the phone with my accountant and she said the dollar for dollar offset of capital gains/losses applies to the gross capital gains.

So, I guess selling my turd stocks only reduces the gross capital gains which in turn would reduce the actual 15% in taxes owed.

I don't have enough losers to cover it all. Maybe 25% of the total.

As an example for simplicity..... With 100k in capital gains, I would have to pay an extra 15k in taxes with no offset. If I were to sell 25k in stock losses my actual additional taxes would still be $11,250.00 based on 75k in gains.

I was thinking the offset was for the extra taxes owed only. Another too good to be true scenario busted. lol!

I guess now the question is..... Is it worth taking 25k in stock losses to save $3,750.00 in taxes?

Sure would clean up my portfolio. :~)

And I also found out we already added the home improvements to the homes cost basis when we turned it into a rental 5-6 years ago.