Part 4

Capital Gains

If you have under performing stocks that you have owned less then a year by selling them you can take the loss against your income. If you have owned the stock longer then a year we recommend you figure the amount of loss and then sell the same value of stock that has made the greatest gain.

For example, you have short term lost of $10,000. The difference between what you paid for the stock and what it is worth today. You sell these at the $10,000 loss. Then you find stocks that you have made short term gain of $10,000 on. Yes, I know you do not want to sell these, but wait a moment. Now your capital gains are zero. Now you buy the same stock at the higher price now your basis is higher and when you do decide to sell these shares the original gain has already been taken so you will pay less capital gains tax unless you do this again and again. So you would never pay capital gains tax.