answersLogoWhite

0

It is advisable to sell stock at a loss and then buy it back when you believe the stock's price will continue to decrease in the short term, allowing you to offset the loss for tax purposes and potentially buy back at a lower price.

User Avatar

AnswerBot

6mo ago

What else can I help you with?

Continue Learning about Finance

What are the options available for managing a wash sale through rolling?

One option for managing a wash sale through rolling is to sell the stock at a loss and then buy it back after 30 days to avoid the wash sale rule. This strategy allows you to realize the loss for tax purposes while still maintaining your position in the stock.


How long must one wait after selling a stock before one can repurchase again?

It's an important strategy for saving income taxes. You sell the stock at the end of the year to take the loss and buy back because you believe in the stock for the long term. The risk is that the stock will have a run up after you sold and before you bought back. I'm not sure how long you have to wait (per IRS) to buy it back though. That's why I bumped into this question.


What happens if you buy the same stock at different prices?

If you buy the same stock at different prices, it can affect your overall investment performance. The average price you paid for the stock will change, which can impact your potential profit or loss when you sell the stock in the future.


Is it possible to sell and rebuy the same stock?

Yes, it is possible to sell and rebuy the same stock in the stock market. This is known as a "round trip trade" or "day trading." Investors may sell a stock to take profits or cut losses, and then buy it back at a later time. However, there may be tax implications and trading fees associated with frequent buying and selling of the same stock.


Can I sell stock on the settlement date?

No, you cannot sell stock on the settlement date as the transaction needs to be settled before you can sell the stock.

Related Questions

What is a stop loss order used for on the NYSE?

A stop-loss order is a predetermined price at which a trader should sell a stock. With regards to the New York Stock Exchange, a stop-loss order is a price at which the stock should be sold to prevent a catastrophic margin loss to the holder of the stock.


Can you claim a investment loss on stock for a company that went out of business even if you did not sell the stock?

Yes. If a company goes bankrupt and, especially, if its business is liquidated, you can claim the full loss on the stock in the year the event occurred.


What do investors who sell stock for less then they paid for them experience?

They experience a monetary loss on their investment.


A stock is currently selling for 36 a share What is your gain or loss if you sell the stock short and the price rises to 62?

You will have to pay $62 to cover the stock that you only received $36 for so your loss is $26 per share.


What are the options available for managing a wash sale through rolling?

One option for managing a wash sale through rolling is to sell the stock at a loss and then buy it back after 30 days to avoid the wash sale rule. This strategy allows you to realize the loss for tax purposes while still maintaining your position in the stock.


How long must one wait after selling a stock before one can repurchase again?

It's an important strategy for saving income taxes. You sell the stock at the end of the year to take the loss and buy back because you believe in the stock for the long term. The risk is that the stock will have a run up after you sold and before you bought back. I'm not sure how long you have to wait (per IRS) to buy it back though. That's why I bumped into this question.


I bought eBay stock and have lost 85 per cent of my investment can I claim the loss on my income tax?

Not if your still holding stock. After you sell it you can claim your profits or losses.


I have a stock cat back that I want to get rid of. Where can you sell an OEM exhaust system?

eBay


What happens if you buy the same stock at different prices?

If you buy the same stock at different prices, it can affect your overall investment performance. The average price you paid for the stock will change, which can impact your potential profit or loss when you sell the stock in the future.


How do you calculate the profit of loss on a stock that you have bought and sold?

You can calculate the profit loss on a stock that uou have bought and sold by looking at the price that you have bought it for and divide that buy how many there are and you will see how many of the items that it was if you have been riped or you got it cheap. You can also sell it for a higher price to other distributors for them to sell. I hope that this information is useful to you. You can calculate the profit loss on a stock that you have bought and sold by looking at the price that you have bought it for and divide that by how many items there are and you will see how many of those items that you bought have been riped or you got it cheap. You can also sell it for a higher price to other distributors for them to sell, or sell them yourself! I hope that this information is useful to you.


How do you take the stock stereo out of an 1995 civic?

pull it out and disconnect the harness. put a new harness on so when you sell it you can out your stock radio back in.


What is wash sale?

A wash sale is where you sell stock at a loss, then buy a substantially identical security to replace it during a 61-day time period starting 30 days before the sale and ending 30 days after it. If you do this, you can't deduct the loss. Three things happen in a wash sale from a tax standpoint--you can't deduct the loss on the wash sale, the loss is added to the basis of the replacement stock, and the holding period of the replacement stock is set to the holding period of the washed stock. The first one is the reason for the wash sale rule. The reason for the rule should be obvious: too many people were saving too much on their taxes by unloading stock, deducting the tax loss, then buying it back the same day because it's good stock and it's really cheap now. The second one is nice: if you bought stock for $100, sold it for $40 and bought it back a day later for $39, the IRS allows you to adjust your new stock's basis to $99--$39 stock price plus the $60 in disallowed loss. (The reason it's nice is it reduces your capital gain--or increases your loss--when you sell the replacement securities.) The third could screw you up depending on how long you held the stock in the first place: if you owned Acme for 20 years and dumped it in a wash sale, the IRS says you owned the replacement shares for 20 years. There are two ways to get around the wash sale rule: wait 31 days before buying the new stock, or buy stock in another company.