Capital Loss v capital gain and taxes

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Dregob
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Joined: Wed Sep 26, 2018 9:45 pm

Capital Loss v capital gain and taxes

Post by Dregob »

I think I know the answer but please humor me. I am trying to avoid a mistake that bumps my tax bracket and stay in the 12% bracket for Roth conversions.

I have a bond fund with a 10k loss. I have a stock that I acquired through a spin-off that is in Canada and forces me to deal with foreign tax credit. I have about a 10k gain. If I sell both they even out -10k + 10k = 0 so nothing is added to my income.
The money would all be reinvested into a total market index fund.
I don’t do much buying or selling and always get paranoid when doing so.

Why? Trying to simplify and tweak AA.

Thank you.
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FiveK
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Joined: Sun Mar 16, 2014 2:43 pm

Re: Capital Loss v capital gain and taxes

Post by FiveK »

Dregob wrote: Tue May 14, 2024 10:54 pmIf I sell both they even out -10k + 10k = 0 so nothing is added to my income.
Yes, especially if both are either long or short term gains.
single2019
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Joined: Thu May 27, 2021 12:13 pm

Re: Capital Loss v capital gain and taxes

Post by single2019 »

FiveK wrote: Wed May 15, 2024 12:20 am
Dregob wrote: Tue May 14, 2024 10:54 pmIf I sell both they even out -10k + 10k = 0 so nothing is added to my income.
Yes, especially if both are either long or short term gains.
Does it matter in this case?
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FiveK
Posts: 16029
Joined: Sun Mar 16, 2014 2:43 pm

Re: Capital Loss v capital gain and taxes

Post by FiveK »

single2019 wrote: Wed May 15, 2024 12:02 pm
FiveK wrote: Wed May 15, 2024 12:20 am
Dregob wrote: Tue May 14, 2024 10:54 pmIf I sell both they even out -10k + 10k = 0 so nothing is added to my income.
Yes, especially if both are either long or short term gains.
Does it matter in this case?
Probably not - didn't put much time into considering all the possible permutations....
avalpert1
Posts: 595
Joined: Sat Mar 02, 2024 6:15 pm

Re: Capital Loss v capital gain and taxes

Post by avalpert1 »

single2019 wrote: Wed May 15, 2024 12:02 pm
FiveK wrote: Wed May 15, 2024 12:20 am
Dregob wrote: Tue May 14, 2024 10:54 pmIf I sell both they even out -10k + 10k = 0 so nothing is added to my income.
Yes, especially if both are either long or short term gains.
Does it matter in this case?
It only matters if you have other losses and gains for the year. Losses offset like gains first, so if you have 10k in LT losses, 10k in ST gains and another 10k in LT gains the losses will offset the LT gains first.
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