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.
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.
Responses. Advice: Free. Good advice: $. See an accountant and your broker, usually in that order or you may get to revisit them again.
how does selling for tax reasons function? I get that if I’ve got 10k shares at a 3$ position and sell them all down here at 2$, I can claim that loss. But I cannot buy back in for 30 days?
Disclaimer...My view, and certainly not aware of your specifics, but in a general sense there are some guidelines. You would be best to speak with your accountant and your brokerage for your specific situation as they (brokerages have their own unique reporting requirements between say IRAs and personal accounts for wash sales. And when you do file your taxes, it won't be a reddit answer, rather the IRS' as what they accept. And we know how reasonable they are, lol.
To your first question, you can, but your tax implications will all be on a short term vs capital gains treatment. See "Wash Sales Rules". Also be mindful of linkage between personal, spousal, and qualified retirement accounts which show recent activity for the same or SIMILAR securities. Again see "Wash Sales Rules". One example:
Can that account not buy that stock for 30 days? If I sold, transferred in another 10k cash, and wanted to buy a fresh batch, would I not be able to?
Again should make this sale and immediate repurchase lose any long term capital gains benefit (assuming you've met the requirements) and reduce to a higher short term gain (higher tax) treatment. Losses accumulate, but only so much may be used and your accountant can provide you with that information specific to your situation.
It’d be ideal if I could swing that on one of my accounts but I’d be afraid of it jumping above 3$ in a month
Frustrating as I can't justify the current low price either. Why this isn't trading above $4 based on the news and current set of numbers they have out plainly is a disconnect from what I see, but then again, wtfo?