On Nov 14, 7:06�pm, bl...[at]triad.rr.com wrote:
- quote -

bracket" for capital gains, is it still smart to be "harvesting
losses"?

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In article <6486-491E2752-864[at]storefull-3112.bay.webtv.net> ,
an_ordinary_guy_158[at]hotmail.com (Bill) wrote:

- quote -

planning AFTER the elections, I am wondering if the guy wasn't
suggesting to harvest the losses with the extra to be carried forward
for when the more favorable treatment of capital gains expires and isn't
renewed.

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blaha[at]triad.rr.com posted:

- quote -

Anybody fortunate enough to have capital gains this year would certainly
be wise to consider "harvesting" losses as an offset. And if losses
exceed gains by at least $3K, they will have the advantage of that
additional sum as a subtraction from ordinary income.

Of course, any excess losses -- which I suspect will be quite common
this year (Alas, I'll be having those) -- will, of course, be carried
forward for use in future years.

I'm no expert -- but rather a volunteer preparer with AARP TaxAide --
but I wouldn't exactly consider that "extra 3K" as _more_ valuable.
It's true that, if your marginal rate is high, it would in fact save a
greater amount than the maximum 15% capital gains rate. We'll see what
the professional experts have to say.

Bill

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Greetings experts:

I just listened to a CPA CPE webinar concerning tax planning after the
elections.
One tip, that I have certainly heard often, was to tell your clients
to be sure to harvest enough capital losses in this down market to
cover any capital gains. This makes since in general, but wouldn't it
be just as prudent to tell people to take enough in losses to cover
your capital gains, plus an additional $3000 to cover the limit of
ordiniay income offset? If the losses are there, I would think that
extra 3k is more valuble than covering the capital gains. Yes?

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<< ------------------------------------------------------- > << The foregoing was not intended or written to be used, > << nor can it used, for the purpose of avoiding penalties > << that may be imposed upon the taxpayer. > << > << The Charter and the Guidelines for submitting posts > << to this newsgroup as well as our anti-spamming policy > << are at www.asktax.org. > << Copyright (2007) - All rights reserved. > << ------------------------------------------------------- >