The Silver Lining in Losses

Investors can sell investments that are now priced lower than when they were purchased, and realize a loss. That loss might be used to offset income elsewhere this year or in future years. In effect, the government subsidizes your loss by reducing taxable income and income tax.

Meanwhile, if you have a profitable position, by selling now you lock in a profit. The tax on that sale might be offset by capital losses (above). If you think the profitable stock is going to do even better in the months and years ahead, you can re-purchase that security after waiting thirty days.

The time is now to strategically plan to stop wasting money on taxes you are not required to pay.