Here is my situation:
I bought a significant amount of Altria (MO) on Oct 26 2009. It is up 27% since I bought it. I am very concerned that the market is about to take a significant hit this fall. So:
1) If I sell MO now, it will be a short-term gain
2) If I wait until Oct 27 to sell, it will be a long-term gain, and result in an almost $1500 tax saving
3) I'd like to lock in the gain until it becomes long-term
Altria is getting ready to pay a dividend (ex-date 9/13). So if I short an equal amount of shares that I currently hold on the ex-dividend date, wouldn't that just lock in the gain regardless of what the market does? And then I can just sell (or cover) both after I reach the long-term criteria?
Is there something basic that I am missing?
Thanks!
I bought a significant amount of Altria (MO) on Oct 26 2009. It is up 27% since I bought it. I am very concerned that the market is about to take a significant hit this fall. So:
1) If I sell MO now, it will be a short-term gain
2) If I wait until Oct 27 to sell, it will be a long-term gain, and result in an almost $1500 tax saving
3) I'd like to lock in the gain until it becomes long-term
Altria is getting ready to pay a dividend (ex-date 9/13). So if I short an equal amount of shares that I currently hold on the ex-dividend date, wouldn't that just lock in the gain regardless of what the market does? And then I can just sell (or cover) both after I reach the long-term criteria?
Is there something basic that I am missing?
Thanks!