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advice sought...
Posted: Sat Nov 23, 2013 1:42 pm
by babysquirrel
Hi. This is more of a tax question than a PP question, but I do have a sizable portion of my portfolio in a DIY 4x25 PP, and consult this forum often and find it very helpful/informative. I am in the process of taking around 100K that is being managed by a fee-based manager back and managing it myself. It has YTD around 4K in realized losses and about 2K in unrealized gains. I want to do things as tax-efficient as possible. Should I sell the winners to off-set some of the losses? Is there any reason to wait until after Jan. 1? Is it better to liquidate then transfer or vice versa, etc. etc.
Anything else I should be aware of? I am not as tax-savvy as I probably should be. Thanks in advance...
Re: advice sought...
Posted: Sat Nov 23, 2013 1:57 pm
by KevinW
What are the assets with the unrealized gains? Could they be used acceptably as one of the PP assets?
Re: advice sought...
Posted: Sat Nov 23, 2013 4:53 pm
by ns2
babysquirrel wrote:
Hi. This is more of a tax question than a PP question, but I do have a sizable portion of my portfolio in a DIY 4x25 PP, and consult this forum often and find it very helpful/informative. I am in the process of taking around 100K that is being managed by a fee-based manager back and managing it myself. It has YTD around 4K in realized losses and about 2K in unrealized gains. I want to do things as tax-efficient as possible. Should I sell the winners to off-set some of the losses? Is there any reason to wait until after Jan. 1? Is it better to liquidate then transfer or vice versa, etc. etc.
Anything else I should be aware of? I am not as tax-savvy as I probably should be. Thanks in advance...
I had to read through those few sentences several times and I probably still didn't understand all the subtle implications.
But if you have the opportunity to record a 2K loss right now, if I'm understanding it right, I would say "why the hell not?". I was carefully manipulating my own PP to take advantage of some losses a few months ago but it hasn't been all that successful with a little more than a month to go before the end of the year.
I haven't seen anybody present any charts but I have to think that the long term effects of careful TLH would probably prove to be quite significant over the long haul.
Re: advice sought...
Posted: Sun Nov 24, 2013 3:48 am
by babysquirrel
KevinW wrote:
What are the assets with the unrealized gains? Could they be used acceptably as one of the PP assets?
The assets with gains are individual stocks - LO, SDRL, and LMT. Suitable for VP but not so much for PP.
Re: advice sought...
Posted: Sun Nov 24, 2013 2:13 pm
by KevinW
If the LDO, SDRL, LMT are a small part of the portfolio --- let's say less than 10% together --- you might consider holding them and treating them as part of the PP stock allocation, until the next dip when you can sell them at a loss.
If it were me I'd sell everything all at once; AFAIK the 4k capital loss will offset 2k of the capital gain, and you can carry forward 2k of capital loss for future use.