Investor Year End Reminder: Farm Your Losses

Don't forget, if you have a lot of capital gains this year and need to reduce your tax exposure, consider liquidating the stocks you are holding at a loss, especially if you don't think they will be moving up for a while. Don't forget the Wash Sale Rule:

A wash sale occurs when you sell or otherwise dispose of stock or securities (including a contract or option to acquire or sell stock or securities) at a loss and, within 30 days before or after the sale or disposition, you:

Buy substantially identical stock or securities,

Acquire substantially identical stock or securities in a fully taxable trade, or

Enter into a contract or option to acquire substantially identical stock or securities.

You cannot deduct losses from wash sales unless the loss was incurred in the ordinary course of your business as a dealer in stock or securities

Talk to your accountant about any tax selling before doing any tax selling.