Location: Westland, Michigan, United States

Graduate of Walsh Institute Of Accountancy (Now Walsh College) Michigan in 1959. Retired in 1987, but still active in the profession **World War II Veteran (Pacific) **PHONE 734-261-1979 **E-MAIL **(Domain Name CPASENSE Registered) **Mentioned in the Journal of Accountancy, SmartPros, Tax Prof Blog, CPA2BIZ, CPA Journal, AccountingWEB, CPATrendlines & More **Search Accounting Blogs: (Includes cpasense)**TOPICS - FINANCE - FEDERAL & MICHIGAN TAXES ** Making Sense Of Your Finance & Taxes

Saturday, August 16, 2008


The usual advice is to take losses if you've got capital gains for the year. But that general rule may not make sense for everyone.

In some situations it may make more sense to avoid recognizing losses in the current year.

That's particularly true in 2008, 2009, and 2010 since capital gains tax rates will be zero for taxpayers in the 10 and 15% brackets.

Even if your gains will be taxed at 15%, itemized deductions, exemptions and credits could bring your tax to a small amount.

Automatically taking unrecognized losses to offset gains may not make sense.

Of course, you've got to look at the investments. If you think the investment will only head lower, you should sell regardless of the tax consequences.

A/N Group Inc.


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