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A. TAX SELLING

It has been a mood swing year in the securities markets.

January – February +10%

March – Mid August Flat

Mid August – Mid October -19%

Mid October – End October +16%

End October – Thanksgiving -10%

Thanksgiving – Present +9%

The one thing you want to avoid is paying tax on gains realized in 2011, and potentially having a capital loss
position in 2012.

Action:

If you have net short-term realized gains for the year, you need to look at selling stocks with
unrealized losses in December.

Exception: See if there are any unrealized long-term gains in your portfolio that would fall in the 15%
tax bracket. If so, take these gains in 2010. Do not make any additional sales at a loss until January 2012.