Housing direction

[garysears]

I appreciate the ego boost patient. Truth is I am NOT smart, practically speaking. My life history so far includes a number of DUMB financial decisions and any real learning was done the hard way.

This site was the gateway for me to a basic financial education. I also visited thehousingbubbleblog for awhile but never posted. I currently spend a lot of time on Calculated Risk where I sometimes post as Not_Going_To_Post. I know you visit there. (really I intended to never post)

Besides Rich and his excellent primer and posts I learned a little from lots of posters here, enough to have confidence in my ability to evaluate potential properties. I am confident I will not have a cash flow problem with my purchase though only time will tell if I overpaid or not. Like most people I ended up paying a little more than my original target price.

I appreciate your insights as well. I know for a fact I take more than I give here.

[SD Realtor]

Gary I also wish you the best of luck and I also think you know what you are doing.

[SD Realtor]

Gary I also wish you the best of luck and I also think you know what you are doing.

[SD Realtor]

Gary I also wish you the best of luck and I also think you know what you are doing.

[SD Realtor]

Gary I also wish you the best of luck and I also think you know what you are doing.

[SD Realtor]

Gary I also wish you the best of luck and I also think you know what you are doing.

[HLS]

Fletch, I was refering to the wash rule for stocks that allows you to replace your holding at current market price and write off the loss of what you bought at higher prices on your taxes.

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

There are people that have held shares for years that dont know they can do this.

There is no legitimate way to deduct losses on a personal residence.

[HLS]

Fletch, I was refering to the wash rule for stocks that allows you to replace your holding at current market price and write off the loss of what you bought at higher prices on your taxes.

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

There are people that have held shares for years that dont know they can do this.

There is no legitimate way to deduct losses on a personal residence.

[HLS]

Fletch, I was refering to the wash rule for stocks that allows you to replace your holding at current market price and write off the loss of what you bought at higher prices on your taxes.

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

There are people that have held shares for years that dont know they can do this.

There is no legitimate way to deduct losses on a personal residence.

[HLS]

Fletch, I was refering to the wash rule for stocks that allows you to replace your holding at current market price and write off the loss of what you bought at higher prices on your taxes.

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

There are people that have held shares for years that dont know they can do this.

There is no legitimate way to deduct losses on a personal residence.

[HLS]

Fletch, I was refering to the wash rule for stocks that allows you to replace your holding at current market price and write off the loss of what you bought at higher prices on your taxes.

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

There are people that have held shares for years that dont know they can do this.

There is no legitimate way to deduct losses on a personal residence.

[ucodegen]

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

Not exactly accurate. You are not “socializing losses and privatizing profits“. You are taxed on any net gain. In deducting the loss, you are reducing the effective basis, should you pick up the same stock issue after wash date. With the reduced basis, you have the potential of a larger gain that you will be taxed at.

For example:
Buy stock A 1000sh @ $11/sh – cost $500
Stock A tanks, to $0.50/sh – current value $500, paid $11,000
Sell A, take loss of $10,500.
Wait 31 days.
Buy back 1000 sh of A at $0.50 – cost $500.
Stock A goes back to $11/sh and you sell – $11,000
After selling, you have a gain of $10,500 – which is precisely offset by your loss of the same amount. Net taxable for the whole thing is $0 – which would be the same result as if you just held the stock over the whole period and sold when it got back to $11/sh.

[ucodegen]

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

Not exactly accurate. You are not “socializing losses and privatizing profits“. You are taxed on any net gain. In deducting the loss, you are reducing the effective basis, should you pick up the same stock issue after wash date. With the reduced basis, you have the potential of a larger gain that you will be taxed at.

For example:
Buy stock A 1000sh @ $11/sh – cost $500
Stock A tanks, to $0.50/sh – current value $500, paid $11,000
Sell A, take loss of $10,500.
Wait 31 days.
Buy back 1000 sh of A at $0.50 – cost $500.
Stock A goes back to $11/sh and you sell – $11,000
After selling, you have a gain of $10,500 – which is precisely offset by your loss of the same amount. Net taxable for the whole thing is $0 – which would be the same result as if you just held the stock over the whole period and sold when it got back to $11/sh.

[ucodegen]

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

Not exactly accurate. You are not “socializing losses and privatizing profits“. You are taxed on any net gain. In deducting the loss, you are reducing the effective basis, should you pick up the same stock issue after wash date. With the reduced basis, you have the potential of a larger gain that you will be taxed at.

For example:
Buy stock A 1000sh @ $11/sh – cost $500
Stock A tanks, to $0.50/sh – current value $500, paid $11,000
Sell A, take loss of $10,500.
Wait 31 days.
Buy back 1000 sh of A at $0.50 – cost $500.
Stock A goes back to $11/sh and you sell – $11,000
After selling, you have a gain of $10,500 – which is precisely offset by your loss of the same amount. Net taxable for the whole thing is $0 – which would be the same result as if you just held the stock over the whole period and sold when it got back to $11/sh.

[ucodegen]

You still end up owning the exact same number of shares but get to deduct the loss based on your higher cost. Socialize losses, privatize profits.

Not exactly accurate. You are not “socializing losses and privatizing profits“. You are taxed on any net gain. In deducting the loss, you are reducing the effective basis, should you pick up the same stock issue after wash date. With the reduced basis, you have the potential of a larger gain that you will be taxed at.

For example:
Buy stock A 1000sh @ $11/sh – cost $500
Stock A tanks, to $0.50/sh – current value $500, paid $11,000
Sell A, take loss of $10,500.
Wait 31 days.
Buy back 1000 sh of A at $0.50 – cost $500.
Stock A goes back to $11/sh and you sell – $11,000
After selling, you have a gain of $10,500 – which is precisely offset by your loss of the same amount. Net taxable for the whole thing is $0 – which would be the same result as if you just held the stock over the whole period and sold when it got back to $11/sh.

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