Replies to post #67565 on Biocentric Energy Holdings, Inc. (BEHL)

[FTW]

real question-
if you are +$3000 in other stocks, but then sell here for -$5000 loss, net you would be -$2000. Can you only write off $2000 as a loss, or $3000 since the loss here is greater than $3000?

[phloyd]

You can claim a 3000 loss, but you can use losses to offset your gains.

For example, Investor 1 has 10K of gains from 8 stocks, and 10K unrealized loss from BEHL. Selling BEHL today means you will pay zero taxes on your gains (net gain of zero). Buying back in at Jan 6 for roughly the same price means you have realized a benefit from your BEHL investment equal to the taxes you would have paid on your realized gains.

And now you have your old (hopefully) position back.

Not wasted trades. Risky trades.