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tax selling strategies


shalab

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What are the strategies the board members use for tax selling? e.g:, sell BAC that has gone down to balance the gains elsewhere? Buffett has done this where he sold COP to minimize his taxes even though he still has a large portion of his net worth in it.

 

 

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Same day sell from taxable accounts & buy from the tax-free/tax-deferred accounts < Dec-31. Sell from the tax-free/tax-deferred accounts by the end of the 2nd week in Jan. Repurchase in the taxable account > Jan-31.  ;)

 

The tax-free/tax-deferred accounts pick up the year-end tax selling gain. The taxman gives you a refund on your taxable account. You reset your cost-base without wash-trading interference. 

 

SD 

 

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