More Tax-Loss Selling Tips And Tactics

Many key tax-saving strategies need to be set up and implemented well before Dec. 31 if you want to benefit from them in the current year. Tax-loss selling is the classic example. Basically, this is the strategy by which you sell investments that are in a losing position in order to generate capital losses that you can then apply to offset capital gains in the year. In my previous article I looked at how to determine if you need a tax loss in the first place, and how to work out whether you actually have any tax losses. I’ll conclude this series with a look at some more advanced tax loss strategies, such as the “kiddie double play” and some traps, like the superficial loss rule.

The kiddie double play