Hi Mr. Gogo -
Harvesting Tax losses
Several of my positions include a few higher priced shares that are under water. Since the new tax bill was signed into law today, I did not need to save these losses for next year but rather use them now to off set some of my gains for this year. Many times I will re-enter the position in 31 days if I feel the company is still undervalued. I continue to build my core position(s) to lower my overall cost basis.
Some of these include:
RAS*, Drys, SVU, ERF, BDN, NOK, PBR
(* might be a candidate for closing out the position)
I match my lot sales and am always harvesting losses through out the year when appropriate. This is different from portfolio re-balancing and/or closing out a position.
The only one I closed out today was DEEP DOWN, INC. (OTC BB: DPDW.OB ) which really never worked out. I needed to book the loss as I had larger than expected booked profits for the year.
I try to complete my tax loss selling early in December hopefully front running the other sellers that tend to do their selling at the end of the month. I typically do a lot more buying in the last week of December cherry picking the bargains that investors are selling for their losses.
With a portfolio of around 90 positions and establishing a position with several buys over time, there are always gains and losses I can book during the year. The key for me is end of year efficient tax management, maintaining low overall costs basis on my long term core positions, being disciplined to peel off shares from my winners and recognizing when I am wrong and closing out those positions.
EKS |
