Hi
First off, I just need to mention that I'm not from the US, so anything specific to the US will probably not apply to me. My question is more about general principles than anything about specific jurisdictions.
My situation is this. I've realized a pretty sizable capital gains profit this year which means that I owe taxes in the six digits for next year so far. The profits are availible for investing in anything (except the part that is due for taxes, which will simply gather risk free interest until it needs to be paid). This has made me think about intelligent investment strategies that could potentially lower my taxes for this year.
The way I see it, I have a discount for all potential losses this year, since I can deduct it from my profits, but I have no losses to realize. However, I think it should be possible to find assets that are negatively correlated, invest in both, and then realize the losses right before NYE, and save the gains until right after NYE.
The ideal assets for this should be some that are pretty much guaranteed to move in opposite ways right around NYE. If one of them doubles in value, and one goes to 0, then I could create a loss this year that would be offset by an equal profit next year, which would postpone some of the capital gains another year. I don't think I'm the first to ever think about something like this, and the legality is a bit unclear as well. Yet my google attempts at finding anything to read about this have been futile, so I decided to ask here. Is there anywhere I could read up on a stragy similar to the one I've posted here?
Submitted August 17, 2017 at 09:02AM by GotCash http://ift.tt/2uTcSw3
