Gyroscopic Investing

Hi,

I own CEF and GTU, which I purchased during 2014 in a taxable account. Both are trading below my purchase price, and I'd like to sell to (hopefully) offset other taxable short-term gains (in regular non-PFIC equities). Does anyone know the mechanics of doing this? Should I still file form 8621 this year? I've searched all over, and many people talk about the need to make the QEF election to ensure that long-terms gains will get preferential tax treatment.. but no one talks about losses.

Thanks!

First off let me make it clear that I am not a tax professional. I think what would I do if I were you. I do not think you have to file anything if you sell everything at a loss, however it only take a minute to fill out and file form 8621 so that is not a big deal either way. Now what I would be examine is the reason for selling recently bought precious metals gold etc. Both are selling at big discounts and seems to me more like a time to be buying rather then selling. Sometimes it is better to just pay tax on a gain. I would not touch my portfolio unless I reached or came very close to a re-balance band for me its somewhere close to 15/35 but I start to watch close at the 20/30 point. PP when balanced is 25% of each of the 4 assets.

The other holding you mention is a short term gain so also not sure why you want to sell it or what you were thinking when you where buying these assets. Are you a trader or an investor? I like most on this forum are investors that follow the PP with the money we can not afford to lose with maybe a small amount that we could afford to lose on speculation
Best way to do speculation investing in my opinion is in a Roth IRA where you do not have to deal with taxes as they have already been paid.

however it only take a minute to fill out and file form 8621 so that is not a big deal either way

Listen to Steve; he knows what he's taking about.

My accountant didn't think I needed to file any gold forms (despite my fwd'ing some of steve's posts) and while it's not an issue right now, it bothers me each and every time I look at my account that I did not file when I could have. I should have been more stubborn with the accountant.

Personally, I file for every year in which I had any PFIC holdings.
My understanding is that you don't have to file, but if you don't file every year that you hold a particular batch of PFIC shares, then any profits on those shareswill not be eligible for the favorable LTCG rates. However, if you have losses, that may not be relevant.

dualstow wrote:

however it only take a minute to fill out and file form 8621 so that is not a big deal either way

Listen to Steve; he knows what he's taking about.

My accountant didn't think I needed to file any gold forms (despite my fwd'ing some of steve's posts) and while it's not an issue right now, it bothers me each and every time I look at my account that I did not file when I could have. I should have been more stubborn with the accountant.

If it's less than 3 years ago, you can still file amended returns.

Yep, Steve once told me something similar. It's being dealt with.