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Strategies & Market Trends : Income Taxes and Record Keeping ( tax ) -- Ignore unavailable to you. Want to Upgrade?

To: Investor2 who wrote (2264)	7/14/1999 11:39:00 PM
From: Gorak Shep	Respond to of 5810

Re: "and the longer holding period can turn that into a long-term loss, which is bad." Why is that bad? He means that a short-term loss can be turned into a long-term loss by accumulating the holding period. This is bad in the sense that capital losses first offset gains of the same holding period thus a short-term loss offsets the higher taxed short-term gain. Extending it to a long-term loss would cause it to offset a lower taxed long-term gain and thus be less valuable.