Every year - Every year, towards the end of the year, tax...

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Every year, towards the end of the year, tax loss selling is a term that often returns to popularity in the investment glossary. The strategy of selling losing investments in your portfolio and applying them against the gains from other investments is a great way for investors to create something positive from a bad or losing investment by minimizing the tax bill to the IRS. You can think of selling losing positions as the silver lining to come from the unsuccessful investment fund or stock pick. However, the tax loss selling rules can be a bit confusing. Understanding these rules is central to making the strategy work in your favor. Some of the key points about tax loss selling rules include: The requirement to designate losses as either short term or long term. Any investment held less than one year is considered short term while any investment held greater than one year is a long term investment. Losses can only be applied towards the appropriate gains. For instance, short term losses have to be applied only against short term gains and likewise long term losses can only be
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This note was uploaded on 07/02/2010 for the course ECON 210 taught by Professor Gat during the Spring '10 term at 카이스트, 한국과학기술원.

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Every year - Every year, towards the end of the year, tax...

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