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Posted
5 minutes ago, Parliament said:

A reminder that 99%’ers like us can only deduct $3k/yr of capital losses.  If you want to not hodl, you should balance it with some capital gains.

If you've made money over the last year and are looking to take some meat off the table, today is a good day to balance it out. 

Posted
4 minutes ago, Parliament said:

A reminder that 99%’ers like us can only deduct $3k/yr of capital losses.  If you want to not hodl, you should balance it with some capital gains.

Ill sell you 5 years of capital loss rollover credits for $4000 and an xbox 360 🤔

Posted
1 minute ago, Bateshorn said:

If you've made money over the last year and are looking to take some meat off the table, today is a good day to balance it out. 

How do I do the math on that?  When selling mutual funds what number should I look at?

I’ve tried balancing gains and losses in the past and missed a few times.  Hadta carry losses >1 year, or paid out some Capital Gains tax.

Posted (edited)
7 minutes ago, Parliament said:

How do I do the math on that?  When selling mutual funds what number should I look at?

I’ve tried balancing gains and losses in the past and missed a few times.  Hadta carry losses >1 year, or paid out some Capital Gains tax.

I kind of eye ball it. On Schwab, you can sell specific lots, or use the tax lot optimizer.  Not sure about Fidelity or Vanguard, but in general, I try to stay long on low cost ETFs.  I was overdue for a rebalance, and while I should have done it sooner, i had some Growth ETF that I need to move out of. So I sold some that had appreciated, plus some that was the result of dividend reinvestment that was underwater.   

The $3000  loss cap on income reduction is after you offset your gains: so if you have 10000 in gains in one thing you like, and losses somewhere else if you sell an asset for a 13000 loss, you offset the gains, plus offset 3000 in income from elsewhere.  Or carryover the loss in future years. 

Edited by Bateshorn
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Posted

Well, I took the rest of my retirement "out" of the market.  Technically, I split it 75% SGOV (returning around 5% right now) and 25% in GLD.  GLD seems like a decent play right now since the outflow leaving the market has to go somewhere and gold is a good bet of where a lot of it will land.  

Posted
34 minutes ago, Tailgate said:

For you younger investors who have invested in good companies and/or ETFs/funds...hopefully you are busy working and not watch tickers today. If so, turn your devices off. Never panic sell and try and time an in and out. Long term and steady always wins the race.

As smarter people have said, Time In the market beats Timing the market.

Suck it up and take all the bad days so you don't miss any of the good days.  The latter hurts worse than the former in the end.

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Posted
3 minutes ago, Reagan1k said:

As smarter people have said, Time In the market beats Timing the market.

Suck it up and take all the bad days so you don't miss any of the good days.  The latter hurts worse than the former in the end.

I can do it. This time will be different.

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Posted
2 minutes ago, Reagan1k said:

As smarter people have said, Time In the market beats Timing the market.

Suck it up and take all the bad days so you don't miss any of the good days.  The latter hurts worse than the former in the end.

This. And buy the dip if you have cash to burn. 

Quote

“to be fearful when others are greedy and to be greedy only when others are fearful.”--Warren Buffett

 

Posted
13 minutes ago, Bateshorn said:

I kind of eye ball it. On Schwab, you can sell specific lots, or use the tax lot optimizer.  Not sure about Fidelity or Vanguard, but in general, I try to stay long on low cost ETFs.  I was overdue for a rebalance, and while I should have done it sooner, i had some Growth ETF that I need to move out of. So I sold some that had appreciated, plus some that was the result of dividend reinvestment that was underwater.   

The $3000  loss cap on income reduction is after you offset your gains: so if you have 10000 in gains in one thing you like, and losses somewhere else if you sell an asset for a 13000 loss, you offset the gains, plus offset 3000 in income from elsewhere.  Or carryover the loss in future years. 

Fidelity allows you to choose your tax strategy. I have my taxable account set up to always sell the highest cost basis shares first. Fidelity also has options to sell the longest held shares first, etc.

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Posted

People in the new administration have started signaling that their will be some headwinds for the economy and equities. So be ready.

I think their bigger concern is the large amount of short term debt maturing. It's more than usual given previous Treasury management. Need lower rates this year to make it happen. So I think stock market choppy/down slightly this year with continued interest rate drop would be an acceptable trade to them for the next 9 months.

Posted
1 hour ago, Parliament said:

A reminder that 99%’ers like us can only deduct $3k/yr of capital losses.  If you want to not hodl, you should balance it with some capital gains.

Yeah that's the most bullshit thing ever.  Why not be able to simply offset the loss with a gain?  I guess somebody has to pay for that carried interest benefit...

Posted (edited)
1 hour ago, Girth Brooks said:

People in the new administration have started signaling that their will be some headwinds for the economy and equities. So be ready.

I think their bigger concern is the large amount of short term debt maturing. It's more than usual given previous Treasury management. Need lower rates this year to make it happen. So I think stock market choppy/down slightly this year with continued interest rate drop would be an acceptable trade to them for the next 9 months.

Yeah, Bessent has not been coy on his comments about the stock market. 

The heated bond market (as flight from equities and/or expectation of lowering rate in response to economy) is good for the treasury in reducing the cost of rolling over the debt coming due soon. 

And theres a gigantic mountain of it due, in part to the recent administrations issuing them as shorter maturity bills and notes. 
 

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Edited by 52-80
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Posted

I agree that you can't perfectly time the market but you can see future possibilities and attempt to time that.

Many big players have been taking profits over the past year anticipating a downturn. It doesn't guarantee that outcome but there are basically nothing but bad signs for the economy. No CR but outside of hardcore MAGA, who believes that the economy isn't in worse shape today? Hell, Trump admits that there will be pain before we get out of it.

Tonight's futures and tomorrow's opening will be key. If there isn't a big bump up, tomorrow could make today look like a winner.

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Posted

So i had no idea about this, but apparently the value of federal gold (eg ft knox) is valued, based on old ass decree, at $40/oz. Thats about 80x below market value. 

Which means that the govt has almost 1 trilly in gold, instead of just 10B. 

Which is 3% of US Debt. So they got that going for them, which is nice. 

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Posted

For everyone that is going to TLH just remember not to buy the same or a “significantly similar” security for at least 30 days or you will create a wash sale and nullify your loss. 

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Posted
2 hours ago, horn4life said:

Yeah that's the most bullshit thing ever.  Why not be able to simply offset the loss with a gain?  I guess somebody has to pay for that carried interest benefit...

What do you mean? You can write off $100k in gains with $100k in losses for a net $0 capital gain tax. 
 

Am I missing something more than basic gain and loss taxes? 

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Posted
1 hour ago, Archer said:

What do you mean? You can write off $100k in gains with $100k in losses for a net $0 capital gain tax. 
 

Am I missing something more than basic gain and loss taxes? 

That is correct, you are not missing anything. 

Once you have no more capital gains, you can only deduct 3k additional losses against other income (W2 income for example).  

Posted
1 hour ago, Archer said:

For everyone that is going to TLH just remember not to buy the same or a “significantly similar” security for at least 30 days or you will create a wash sale and nullify your loss. 

However, moving from say a growth etf to a similarish passive mutual fund is fine. 

Posted
42 minutes ago, Bateshorn said:

However, moving from say a growth etf to a similarish passive mutual fund is fine. 

True but going from ITOT to VTI is probably not. 
 

I got caught up in a wash sale from a spinoff where Fidelity sold a partial share at the spin and then I bought more shares to get an even lot. Luckily it was small money so it didn’t matter in the end.
 

Tracking same stock wash sales is pretty straightforward, I’m curious if the brokerages have a cross reference table to identify “significantly similar” funds, such as ITOT and VTI. 

Posted
2 hours ago, Archer said:

For everyone that is going to TLH just remember not to buy the same or a “significantly similar” security for at least 30 days or you will create a wash sale and nullify your loss. 

Yeah... I have fucked myself multiple times with this.  And I did not add that into the equation.  

Posted

Had long-planned a large backdoor Roth move for Tuesday. With the future market tanking as I type, seems like I picked well months ago! It’s almost like a market doesn’t like an unpredictable leader who has bankrupt casinos. Shocking, I tell ya. 

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Posted
9 hours ago, Anastasis said:

Don’t let Monday’s sell-off scare you out of the market entirely, Jim Cramer says

 

Do what you know is right. 

RIP everyone’s 401k

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Posted

With out advanced trading tools, watching the buyers/calls try to rally the market is sort of sad/fascinating.  It's like they'll fight the market back up to something approaching stabiliy/equilibrium, then a fresh wave of selling will pull them out to sea. 

Posted
6 minutes ago, VABuckeye said:

Approaching 10% territory.  VOO is down 8.51% n the last month.

Just getting started.  There is no positive news to get this back on track for a while.  No CR.  Meaning, no continuing resolution.

Posted

So I have a few questions about how options are taxed.  Since i was had a shit ton of disallowed losses a couple years ago, I want to try and avoid those going forward. So tell me where I am wrong!!! Might be everywhere!

1) If I buy and equity using a covered call. And the call expires OTM, there is not a taxable transaction because I have not sold the stock? Correct?  

2) So if I am correct on #1, then you could conceivably sell calls repeatedly on the same shares, if the ALL fell OTM, and the basis value of the stock would just fall.  Correct?

So I think I am correct on above.  But am not certain, and since I have not given this much thought I thought easier to come ask here. 

What I am trying to figure out is how are the costs of rolling, or closing options positions treated?  From the perspective of disallowed losses??? For example: Lets say I have a $50 stock that I buy, and sell a covered call a month ahead to sell the Stock for $55. So my cost basis if $45 The stock moves upwards past the $55 mark by a few cents going into the expiration. What is the best strategy from a tax perspective?  Do you toll the stock out endlessly potentially to avoid a gain?  This is the part I do not get, since I have no personal tax history to draw on.  

How is the cost side of the roll taxed?  I see a loss for the cost on my books, but how is it treated?  Anyhow thinking about it last night after a couple Ritas was not giving me any clarification (not surprisingly) ANY LINK ANYWHERE THAT SIMPLY EXPLAINS THIS?

 

PSA - If you are in Austin, you can at least get free crawfish today!  C-Boys at 5pm.  If you RSVP you get a lonestar too I think.  And while the markets are sucking, perhaps sucking the heads a few free mudbugs and some Zydeco music might ease the pains of the day.

 

 

 

Posted

found this -The wash sale rule means that if an investment is sold at a loss and then repurchased within 30 days before or after the sale, you cannot claim the initial loss for tax purposes. The 30 days on either side of the sale, plus the day of the sale, translates into 61 days of what is called a “wait period.” This is the time during which you cannot buy the same or similar security. 

Posted
37 minutes ago, horn4life said:

So I have a few questions about how options are taxed.  Since i was had a shit ton of disallowed losses a couple years ago, I want to try and avoid those going forward. So tell me where I am wrong!!! Might be everywhere!

1) If I buy and equity using a covered call. And the call expires OTM, there is not a taxable transaction because I have not sold the stock? Correct?  

2) So if I am correct on #1, then you could conceivably sell calls repeatedly on the same shares, if the ALL fell OTM, and the basis value of the stock would just fall.  Correct?

So I think I am correct on above.  But am not certain, and since I have not given this much thought I thought easier to come ask here. 

What I am trying to figure out is how are the costs of rolling, or closing options positions treated?  From the perspective of disallowed losses??? For example: Lets say I have a $50 stock that I buy, and sell a covered call a month ahead to sell the Stock for $55. So my cost basis if $45 The stock moves upwards past the $55 mark by a few cents going into the expiration. What is the best strategy from a tax perspective?  Do you toll the stock out endlessly potentially to avoid a gain?  This is the part I do not get, since I have no personal tax history to draw on.  

How is the cost side of the roll taxed?  I see a loss for the cost on my books, but how is it treated?  Anyhow thinking about it last night after a couple Ritas was not giving me any clarification (not surprisingly) ANY LINK ANYWHERE THAT SIMPLY EXPLAINS THIS?

 

PSA - If you are in Austin, you can at least get free crawfish today!  C-Boys at 5pm.  If you RSVP you get a lonestar too I think.  And while the markets are sucking, perhaps sucking the heads a few free mudbugs and some Zydeco music might ease the pains of the day.

 

 

 

You are not correct on the tax treatment of the covered calls. If you sell a call option and the call expires worthless, the call premium is taxable as a short-term capital gain. It doesn’t reduce your basis in the underlying shares.

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