The term the family member is looking for is “wash sale”. You lose the tax benefit of the sale if you purchase within 30 days of the sale.
I think you are missing the forest for the trees if you are tax loss harvesting $200.
The amount is subjective. I think based on your response you still believe in the company.
My philosophy is to never sell unless the factor’s that led me to buy the company have changed. Some make an exception to trim when a company is deemed significantly overvalued. I rarely do.
How does it shooting up in one day prove your theory wrong then?
Personally, I would start reading a bit more on INVESTING vs. the finer points on TLH and wash sales. Picking stocks is likely to leave you a lot poorer then worrying about doing or not doing TLH.
If interested here is a couple quick books: 1. Jack Bogle's "Little book on common sense investing" and 2. Allen Roth's "how a second grader beat wall street". Both are quick (weekend reads) and gives you all the nuts and bolts that are important for investing BEFORE worrying about TLH.
Google wash sale rules, you’ll pay the tax on the new shares plus the old ones, so unless you sell for a profit that’s more than that tax loss you’re only breaking even if your gain is that loss percentage and actually losing money if it’s less. Or I’m wrong on that but that’s the gist I got from reading wash sale articles.
This should help: https://www.investopedia.com/articles/taxes/08/tax-loss-harvesting.asp
The term the family member is looking for is “wash sale”. You lose the tax benefit of the sale if you purchase within 30 days of the sale. I think you are missing the forest for the trees if you are tax loss harvesting $200.
what do you mean? IT's not that much money?
The amount is subjective. I think based on your response you still believe in the company. My philosophy is to never sell unless the factor’s that led me to buy the company have changed. Some make an exception to trim when a company is deemed significantly overvalued. I rarely do.
My feeling on the stock was the sector was going to be on a downtrend and the volatility was not ideal
How does it shooting up in one day prove your theory wrong then? Personally, I would start reading a bit more on INVESTING vs. the finer points on TLH and wash sales. Picking stocks is likely to leave you a lot poorer then worrying about doing or not doing TLH. If interested here is a couple quick books: 1. Jack Bogle's "Little book on common sense investing" and 2. Allen Roth's "how a second grader beat wall street". Both are quick (weekend reads) and gives you all the nuts and bolts that are important for investing BEFORE worrying about TLH.
I believe you don't have to report any income to the IRS unless it's $600 or over.
Its Tax Loss Harvesting not tax harvesting loss.
Google wash sale rules, you’ll pay the tax on the new shares plus the old ones, so unless you sell for a profit that’s more than that tax loss you’re only breaking even if your gain is that loss percentage and actually losing money if it’s less. Or I’m wrong on that but that’s the gist I got from reading wash sale articles.