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Article: Harvest your capital gains? Do the math when considering paying taxes now rather than later.(The Tax-Conscious Adviser)
- Article from:
- Investment News
- Article date:
- June 2, 2008
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Copyright informationCOPYRIGHT 2008 Crain Communications, Inc. This material is published under license from the publisher through the Gale Group, Farmington Hills, Michigan. All inquiries regarding rights should be directed to the Gale Group. (Hide copyright information)
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Byline: Robert N. Gordon
A mantra of tax-efficient investing is to harvest capital losses and defer all gains. Does it ever make sense to take capital gains voluntarily?
As a rule of thumb, no, but there are exceptions. Both Howard Marmorstein, associate professor of marketing at the University of Miami School of Business, and David Stein, chief investment officer of Seattle-based Parametric, have explored taking gains in a portfolio context. Taking gains is easy; there are no wash sale rules for capital gains. If you sell for a profit and repurchase the same security within 30 days, the government still wants its money.
Because interest rates are so low, a ...
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