OTCPK:NEPTF - Post by User
Post by
gwrbion Dec 20, 2008 3:13pm
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Post# 15659666
Tax loss selling
Tax loss selling
Everyone is down on this one (like most other stocks), but we need to resist the urge to legitimize the loss for tax purposes. It would be waste of a commission, and then you would need to refrain from re-buying for 30 days (I think, otherwise there is no deduction). The capital loss only has an effective tax savings of 23% (at the high rate, and assuming you have capital gains to offset). In that 30 days, the stock could easily correct upwards more than 23% which would equate to only 10 cents.
However, I cam curious to see what happens when the New Year is here, the auto bailout is behing us, Obama takes over, interest rates remain low, and tax loss sellers have completed their purge.
All things being equal, who would be seller in January (when they could have sold in December to book a tax loss). I am predicting NTB goes north of $1.00 (min) by Valentine's Day.