The Entrepreneur Forum | Startups | Entrepreneurship | Starting a Business | Motivation | Success

Time to Lock-In Your Losses!

Remove ads while supporting the Unscripted philosophy...become an INSIDER.

MJ DeMarco

Administrator
Staff member
EPIC CONTRIBUTOR
FASTLANE INSIDER
Read Millionaire Fastlane
I've Read UNSCRIPTED
Summit Attendee
Speedway Pass
Jul 23, 2007
31,649
118,994
3,751
Fountain Hills, AZ
Folks as the end of the year approaches, now is a good time to analyze your portfolio and realize those loses to reduce your taxable income.

If you have stocks or mutual funds in the red, selling them will lock in the loss and reduce your taxable income. This is also a great time to rebalance and reanalyze your portfolio. However be careful as capital gains distributions are looming in the coming months as I wrote in this post.

A great example of this comes from my own experience. As I wrote in the other thread, I bought a house the other day and need to come up with $250,000 in cash. The source of this cash will be any investment sources that have LOSSES. This way, I reduce my taxable income by creating realized losses, yet, still come up with the money for my secondary home.

I'm sure Diane could add more to this topic, but paper losses don't reduce your taxable income -- only realized losses! If anyone is expecting to owe taxes, start selling those losses!
 

Don't like ads? Remove them while supporting the forum. Subscribe.

Diane Kennedy

Bronze Contributor
Aug 31, 2007
795
211
49
Folks as the end of the year approaches, now is a good time to analyze your portfolio and realize those loses to reduce your taxable income.

If you have stocks or mutual funds in the red, selling them will lock in the loss and reduce your taxable income. This is also a great time to rebalance and reanalyze your portfolio. However be careful as capital gains distributions are looming in the coming months as I wrote in this post.

A great example of this comes from my own experience. As I wrote in the other thread, I bought a house the other day and need to come up with $250,000 in cash. The source of this cash will be any investment sources that have LOSSES. This way, I reduce my taxable income by creating realized losses, yet, still come up with the money for my secondary home.

I'm sure Diane could add more to this topic, but paper losses don't reduce your taxable income -- only realized losses! If anyone is expecting to owe taxes, start selling those losses!

MJ: Thanks for the reminder. You're absolutely right.

If you have a capital loss and no gains, you can take $3K of the loss against your other income. So, if you have gains - take the losses NOW to offset all you can.
 

Sponsored Offers

MARKETPLACE Not sure how to start? This free book will teach you how to build a successful web design business
I read the book and I liked it! I would recommend it to any newbies on the forum. The part...
  • Sticky
MARKETPLACE Fox Web School "Legend" Group Coaching Program 2021
Any scholarship programs for those who can't afford the course? Broke but need this course :)...
  • Sticky
FEATURED! Introducing... WEALTH EXPO$ED, A Short Story By MJ DeMarco
It's an affiliate link, so it's hard to give those up! The affiliate links are automatically...
  • Sticky
MARKETPLACE Lex DeVille's - Advanced Freelance Udemy Courses!
A week ago someone asked if one of my courses is still relevant (referring to the Upwork...
  • Sticky
MARKETPLACE You Are One Call Away From Living Your Dream Life - LightHouse’s Accountability Program ⚡
Thanks for clearing that up. What do you recommend for those who are still in the process of...
  • Sticky
MARKETPLACE Kill Bigger Incubator
I have not offered one of these in a while, but it looks like I have time to take on an...

What are Fastlaners Currently Reading?



Forum Sponsor

Grow an online business:
- Start immediately!
- Master business skills!
- 100+ Fastlane students enrolled!
Review & Details >

New Topics

Fastlane Insiders

View the forum AD FREE.
Private, unindexed content
Detailed process/execution threads
Monthly conference calls with doers
Ideas needing execution, more!

Join Fastlane Insiders.

Top Bottom