Tax Loss Sales: It's That Time of Year Again
Hi Everyone 😺
So What is Tax-Loss Selling?
Why Now?
Since it is the end of the year, it makes it very clean for your personal taxes to sell an asset now, in 2018 and wait your 30 days to buy it back in 2019. Generally speaking, assets which have trended down in 2018 will be victims of above average Tax-Loss selling this time of year. Humans are irrational creatures and sometimes don't want to end a year with a loser; they may also need extra money for Christmas shopping, entertaining, and winter tires; I have no clear idea why, but people tend to sell more securities at the end of the year. October and November have been terrible for the markets this year as well. So, compared to the past 12 months there are plenty of sales!
For those of you who did exceptionally well, you have either received a large tax bill or are afraid of receiving one. Well don't fear, you may be able to offset some of your gains by realizing those losses. Don't think that those losers will ever gain their value again either, it is a fact, many cryptocurrencies and stocks will eventually be worth nothing. What goes down, may, in fact, stay down forever.
Forming an emotional bond with a particular security, stock or cryptocurrency is a great way to lose money and so is poor tax planning, so consult with your tax professional today!
STAY RATIONAL!
This blog isn't intended to be financial advice and I am not an accountant so please don't attempt to make your own tax strategies without consulting a local tax professional. I am not suggesting you should invest in any particular security, cryptocurrency or that investing this time of year will result in above-average profits. You could lose all your money investing and as the past year has shown, many people have indeed lost most of their cryptocurrency investments. If anything I am suggesting that you ask your accountant about tax-loss opportunities to make the most of poor investment decisions.
Who here thinks Steem is on sale and plans on buying some in the next couple of months? If you look into my wallet, you can see that I have been slowly accumulating more Steem. I may decide to buy some more soon as it is definitely cheaper than it was in March when I started this blog. What do you all think about buying Steem and powering up? Please let me know your comments below
Bye for Meow 😺