The Justa & Lars Honors Bob Brinker Investment Club Message Board

STOCKTALK

We've detected that you're using an ad content blocking browser plug-in or feature. Ads provide a critical source of revenue to the continued operation of Silicon Investor. We ask that you disable ad blocking while on Silicon Investor in the best interests of our community. If you are not using an ad blocker but are still receiving this message, make sure your browser's tracking protection is set to the 'standard' level.

Pastimes : The Justa & Lars Honors Bob Brinker Investment Club

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next

To: Justa Werkenstiff who wrote (12394)	3/11/2000 9:49:00 AM
From: MrGreenJeans	Read Replies (2) of 15132

Justa After moving to 85% cash and bonds a few weeks ago and cashing in on my long positions for the year, I moved to 97% cash and bonds today. Why not have hedged some of the positions? Taking gains invokes a 20% or 28% capital gains tax along with city / state taxes, in some cases, upwards of 10.5% an automatic decrease of approximately 30% on profits because your Uncle wants a cut. On very long term holdings with low cost bases the whole holding is taxed at such rates. One reason I have hedged instead of cashing out is I weighed the tax cost of cashing out vs. a decline of more than 30% and decided holding via hedging may be the optimal solution. Some holdings, primarily option holdings, I had to cash out of and I am now rewarded with paying heavy estimated taxes for the next year.

Report TOU Violation

Share This Post

Public Reply Prvt Reply Mark as Last Read File

Previous 10 Next 10 Previous Next