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View Poll Results: Do you have capital loss carryforwards and/or current positions carried at a loss?
YES 80 77.67%
NO 23 22.33%
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Old 04-14-2011, 08:37 PM   #21
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A completed the tax return of one veteran that had a 335k loss carryover. He told me that he bought and sold stocks based on the advice of his broker. I told him that I thought he was taking alot of risk for a gentleman his age (80ish). BTW this was the first year he did not do his own taxes. He said that he was happy with his portfolio and that he had amassed quite a net worth for not "knowing much" about stocks. He had been a fighter pilot in Korea and Vietnam and had bailed out of his aircraft three times. When he retired he was in a wheelchair and was told that he would never walk again. (he's walking just fine now)
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Old 04-14-2011, 08:39 PM   #22
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I didn't have but a couple of thousand dollars of taxable money in one stock fund at the drop. I converted those to Roth IRA and then added to max out the Roth IRAs for us. I now have most (80%) of my taxable money in stock funds. The other 20% is scattered in super or mega or whatever savings accounts. It's the best return that I can find that I trust.
I think that fund managers have an easier time. After all, it's not their money.
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Old 04-14-2011, 08:40 PM   #23
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Still carrying some losses that I harvested in 2009. However, if I sell everything now, would have a nice, nice net gain that I will have to share with Uncle Sam.
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Old 04-14-2011, 09:27 PM   #24
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Consider two investors with taxable accounts of $1million on October 2007.

A. Sells everything on March 10, 2009 and incurs a $500,000 loss, but immediately buys $500,000 of similar, but not substantially identical securities to maintain her asset allocation.

B. Keeps her $500,000 portfolio intact on March 10, 2009 and does nothing.

Now in April 2011, both of their portfolios are now worth $1,100,000.
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Old 04-14-2011, 09:43 PM   #25
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A) I did not sell and buy at the same point; I sold steadily in mid 2008 to raise my cash and only started to buy back in late 2008 to mid 2009.

B) When I bought back, I bought different stocks, which I would like to think did better in the subsequent recovery than the ones I used to own. This is probably all fantasy, as I do not go back to see how the ones I sold fare relative to the ones I own now.
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Old 04-14-2011, 09:59 PM   #26
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I have loss carryforwards, but no positions that currently have unrealized losses. My loss carryforwards derive from two sources 1) Employer stock that I was forced to hold 2) Vanguard International Explorer Fund - Explorer pays out nearly all of its gains each year so my basis was almost always equal to NAV. During the crash I 'tax loss harvested' this fund by rolling it over into a international small cap index. Hopefully the index will not be the tax hog that Explorer was.
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Old 04-14-2011, 10:37 PM   #27
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Originally Posted by jimnjana View Post
A completed the tax return of one veteran that had a 335k loss carryover. He told me that he bought and sold stocks based on the advice of his broker. I told him that I thought he was taking alot of risk for a gentleman his age (80ish). BTW this was the first year he did not do his own taxes. He said that he was happy with his portfolio and that he had amassed quite a net worth for not "knowing much" about stocks. He had been a fighter pilot in Korea and Vietnam and had bailed out of his aircraft three times. When he retired he was in a wheelchair and was told that he would never walk again. (he's walking just fine now)
This guy has the right stuff.

Ha
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Old 04-14-2011, 10:44 PM   #28
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Wiped out all the carry forward losses of 2008. Took the $3000 last year and wiped out the rest this year with 2010 gains.
For 2011 already have some losses ...that were in one high beta stock...but hopefully before the end of the year ...there will be some gains....
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Old 04-14-2011, 11:33 PM   #29
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Same here. Spiraled my way down through the spring of 2009. In addition to booking all the losses I was able to consolidate a lot of things and simplify the basis into single lots.
Ah, yes, yes. The old portfolio simplification ploy!

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Old 04-15-2011, 12:15 AM   #30
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Realize those losses, and carry them forward. After 2009, I doubt I'll ever pay capital gains tax again...
I tax-loss-swapped just about our entire portfolio, wiped out a pile of Berkshire Hathaway cap gains (in the college fund), and will probably carry forward the federal tax losses into 2012.

I've accumulated enough state tax credits to carry forward through probate...
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Old 04-15-2011, 08:00 AM   #31
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Tax havested in 2009 an still have $47K in loss carryover. Sold and Bought same day in Feb 2009 not to be out of the market. Now have signifantly more than 47K unrealized gains as of end of March. Glad to have made a comeback and then some.
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Old 04-15-2011, 08:36 AM   #32
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I can only hope that I have enough gains in the next 20 years to offset the
losses that I have secured
I'm with you.
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Old 04-15-2011, 11:28 AM   #33
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We had lots of losses - realized all we could in '08. Over the past year most have been used to offset gains - we now have three consecutive years of "0" federal tax, a record for me going back to 1970. There's a small amount left but I'm guessing it won't make it to the new year. Like Mr. Ha in the original post, I am a bit disconcerted by the the fact that everything is up and in the green. Now, if I could only figure out which asset class doesn't belong...
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Old 04-15-2011, 11:38 AM   #34
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As a CPA I see a lot of tax returns and I have several clients with capital loss carryforwards in excess of $1,000,000. In fact some of them are very likely to die with this sort of c/f - and that capital loss just goes pouf in the night on death. Kind of a bummer that you can't take it with you I guess.
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Old 04-15-2011, 12:17 PM   #35
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As of Jan 1: $15000 in unrealized losses and $45,000 in unrealized gains. Plus $4000 in carryover losses from 2010.

Unrealized losses are primarily in Vanguard Pacific and European index funds, and these may be realized this year when I switch these funds to Vanguard Total International Index. We still have some cap losses sitting unrealized in some dot com era stuff that I have just never sold in order to realize the losses. I have been waiting to see if I could tax gain harvest and use up some of the 0% cap gains bracket a year or two, but rising earned income is making that less likely as the years go by (unless DW or I quit working).
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Old 04-15-2011, 12:19 PM   #36
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I am still carrying a loss from 2002. Since then, just about everything I do is in tax sheltered accounts so I don't have much gains to offset against.

2001 and 2002 where painful. (or somewhere around that time - I try not to remember)

JD
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Old 04-15-2011, 12:20 PM   #37
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Originally Posted by trirod View Post
As a CPA I see a lot of tax returns and I have several clients with capital loss carryforwards in excess of $1,000,000. In fact some of them are very likely to die with this sort of c/f - and that capital loss just goes pouf in the night on death. Kind of a bummer that you can't take it with you I guess.
If one believed in the after-life, one would like to think that it would be a much nicer world, where there were no taxes, no politics, no gummint needed, and where all inhabitants were nice people (Duh, they would not be admitted otherwise ).

So, there's no need to take that capital loss with you, 'cause there's no stock market and taxes up there, and there's no need to keep score.
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Old 04-15-2011, 12:37 PM   #38
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I got the selling stock at a loss part down pat (BofA! GM!). According to the tax man we're doing ok as far as making money also. I guess it's nice being able to offset $3000 income a year, but it kinda pales in comparison to our quarterly taxes. Somebody has to pay for those cruise missiles and senior national park pass freeloaders.
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Old 04-15-2011, 12:44 PM   #39
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Here's a story for you.

A rich man was about to die. He wanted to bring his wealth with him to heaven, and prayed on his deathbed for a way to bring some with him.

So, an angel appeared by his bedside, and said that because he was a nice man, he was allowed an exception. One carry-on, the angel said.

Yes, rich but nice men do get admitted to heaven, contrary to the story about rich men and camels and eyes of needles, but I digressed...

So, our man packed one suitcase full of gold bars!

At the pearly gate, St. Peter said "Eh, where are you goin' with that suitcase?".

Our man presented the paperwork for his exception. St. Peter scratched his head and said "Hmm... I have never seen this before. OK, you can go through, but must open the suitcase for inspection".

So, our man opened up his case....

St. Peter blurted out "You, you bring with you your own sidewalk pavers?"
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Old 04-15-2011, 10:10 PM   #40
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We have a loss carryover of about 20K now. Directly the result of over confidence in the market coupled with coming across a property we had to have...At least we are making money on the vacation rental we purchased.
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