Last edited by Siriusowner; 07-10-2009 at 01:46 PM.
These are called realized capital gains but keep in mind, realized losses offset capital gains. Say during the year you make $10K in profits and loss $5K, your capital gains are $5K. And you can declare the $5K as a loss since you did make $10K and pay taxes on Capital gains on $5K only.
If during the year you make $3K profits and loss $7K then you have $4K in losses. This case is different, You made $3K but loss $7K for a total loss of $4K BUT you can only declare $3K in losses in your tax return. IRS limits. The extra $1K is rolled over to the following year.
Sounds like that's the tricky part - "Trade other issues, but be careful do not lose your money anywhere else."
Thanks for explaining the Wash Rule.
yes s.o. you were right in this case, i did sell most of my position at .41, wish i could of sld it a bit higher but o well a 6 cent gain aint bad, better than the 2 cent gain id be at now
Tripping, I do make mistakes but this time all my indicators were bearish, I usually use 3 (trend line, MA and market sentiment) but this time I double check with one more and it did turned out to be bearish (momentum with breakout). Everything still bearish but momentum is beginning to change; although it does not mean anything yet.