| | | Re: Old Folk Portfolio ... Tax Loss Selling
I made a couple of moves regarding tax losses. There is a considerable amount of capital gains realized this year, especially when it comes to dividends collected, I thought I would try to offset the tax hit a little bit by taking advantage of some tax loss selling.
I was looking for anything showing a 10% loss or better for this purpose. The assets I sold I do want to buy back after the wash rule expires (31 days) and my thoughts are that if I own something that is down 10% or more at this time, it will not rise 10-12% over the next 31 days, if I thought it would I wouldn't be selling, I'd be adding to it.
Anyway, CHW is down 12% and NKE is down a little more than 12%.
NKE is coming off an earnings announcement where they guided lower over the coming months, and if they expect lower results, I can't expect price to rise 12% in the next 31 days so I will take advantage of the tax loss and buy NKE back with a lower cost basis next month.
I am doing the same thing with CHW.
Most people would look at NKE as an opportunity to average down with this correction, and often times that is the correct move, but in my case, with as many tax gains as I have, I wish to lower my tax exposure thus making a small gain there and then buy back NKE at a lower cost basis next month.
These are moves that a lot of people don't utilize but are necessary if we are managing our portfolios effectively. |
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