Looks right to me, but I just woke up.59 South said:
Question for you guys more familiar with the tax stuff. I think I know the answer from some quick googling, but thought I'd confirm with you smarter types.
Since I do most of my trading in Roth and 401k I usually never worry much, but this year is different due to some substantially large gains I have in taxable account. Here's what I have to sort out in the next month:
- large gains in stocks bought in the last few months July - Aug mostly. I want to sell at least some of these before holding for a year to get down to long term cap gains. 3 options: sell as short term gains in 2020, wait till 2021 to sell as short term gains or wait till >1 year hold (out 8+ months)
- large gains in stocks that I've held >1 year. I think I need to just hold these since I don't really want or need to sell them (AMZN for example)
- fairly large losses in stocks held >1 year that aren't as much as my 2020 short term gains if I sell them all. (some speculative plays from a few years ago that didn't work out)
My main question is to confirm that I can offset short term capital gains with long term losses. If that's true, I think my best route is to sell all of those long term losers, and then sell an equal gain amount of the short term 2020 buys.
For a quick example assuming I was exactly breakeven on all other trades this year. Let's say I have $50k gains in ROKU from an August buy. I also have $25k gains from AMZN bought in 2018, and $25k in losses from a stock bought in 2018. So I'd sell half my ROKU and all my old loser to breakeven? And just keep holding my long term AMZN? And keep the ROKU half essentially net free at least until a year since I bought it? And if I really want to keep my full ROKU position, I can just buy that half back at any time?
TIA!
Sell a little more when my divorce is final and then we can celebrate at every pub in your area sometime in 2021.