I wonder what you may think: I bought 100 shares of stock @$20 a few years ago in company "A" and basically watched it drop to $10 a share. So, I recently bought 200 @ $10 and the stock is now at $15. I do not think (?) it will go much higher, but, obviously, could be wrong. With other stock in my portfolio this year, I have been doing much better and am showing a nice gain - a gain will be paying taxes on. I am thinking of selling 100 of of "A" at $15 (FIFO). For one, to take a hit to reduce my overall gains paying taxes on. Second, it would make my portfolio look better . I suppose this is mostly (all?) mental, but what do you think?
Yes you can do this... but not if you bought the stock within the last 30 days, and then you cannot buy the stock again in the next 30 days after selling at a loss. Otherwise it will be counted as a Wash sale and not allowed to offset capital gains at tax time.
Thanks for the replies. So, if I am set to sell via FIFO and I don't sell more than 100 shares (The old amount), I could apply the loss to offset capital gains, correct? Even though I increased my position in the last 30 days.
