When I checked my estimated taxes a couple of weeks ago, I got a 240-volt shock. You may find yourself in the same situation. To help us both out, let s review some of the basic tax rules governing capital gains and losses. If you hold a winning investment more than a year, the tax consequences are much easier to bear. However, net losses aren t the problem facing most investors today.
Net gains are.
There are two points of view. If all your gains this year were long term , some tax advisors suggest waiting until next year to take any losses. I recommend that you offset as many gains with losses as you can, regardless of holding period. Shave your net gains as close to zero as possible. A penny saved is a penny earned.