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

To: Colin Cody who wrote (1645)	12/26/1998 11:45:00 PM
From: RocketMan	Read Replies (1) \| Respond to of 5810

No, I would not do this in order to buy at a higher cost (unless, of course it rises). I meant at a higher cost basis for taxes, so that future capital gains taxes will be lower. For example, if I bought at 50 and it is now selling for 100, I have 50 per share in capital gains. If I have enough in short term losses to offset the 50 in gains (not pleasent), then why not sell this year, re-buy in January at around 100 (assuming it does not change much in price, or goes down), and have a new cost basis of 100 rather than 50, so next year if I sold my capital gains would not be as high. It is equivalent to using up my loss credits this year instead of having to use them at the rate of 3000 per year for so many years.