I experienced losses over the $3000 limit. Does it make sense to sell a stock that I made a profit on to offset the losses, and then rebuy the stock because I believe it will continue to make money? i.e. Sell stock A short term loss $2000. Sell stock B long term loss $3000. Sell stock C for short term gain of $5500.

Pay tax on the $500 short term gain and then rebuy the stock?

It would seem I then have saved paying future tax dollars on the $5000 gain.


Long term gains are taxed at 15% maximum.

Losses, up to the $3K/yr you cited, can offset ordinary income, so 25% or higher, depending on your income. Better to take the loss that way.

With my usual disclaimer:

Do not let the tax tail wag the investing dog.

  • 2
    agree with Joe Taxpayer. Don't make investment decisions solely based on tax consequences. Sell a stock when it's right to sell a stock, or when you need capital. Maybe decide to sell on Dec 30th or Jan 2nd if it will help your tax situation. You can always carry losses forward in time.
    – rocketman
    Sep 20 '17 at 3:07

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