Similar to this question, but I’m trying to understand the strategic value of using ST losses.
I currently have -$20k in ST losses and +$100k in LT gains. Per my math, if I use it against +$20k in ST gains, I save $10k in taxes (50% marginal rate including state taxes), but if I offset against the LT gains, I only save about $6.7k (33% rate including state taxes).
Does that strategy sound right? Is it better to capture +$20k in ST gains to maximize the value of the ST loss or am I missing something?
In response to the comment - Some I will hold until LT/forever, but others are mixed — Ideally I’d like to hold till LT, but they are also volatile growth stocks that are up quite a bit, so who knows if the gains will last till they become LT. I wouldn’t mind selling some and moving to something like VOO if the ST offset strategy is the right one.