Sell today if you’re looking to sell to generate tax losses for 2020.
After today, December 29, you can still sell but the losses will count for the 2021 tax year.
Remember you can rebuy any stocks or other financial assets you sell to generate a 2020 tax loss after 30 days. The wash-sale rule says that you can’t buy any substantially identical stock within 30 days and expect the IRS to agree to your tax loss.
Also remember that you can only harvest tax losses in a taxable account.
Today, December 29, I’m going to harvest my tax losses by selling Parsley Energy (PE) with a 34.10% loss and Lions Gate Entertainment (LGF-A) with a 55.99% loss out of my Jubak Picks Portfolio, and YPF Sociedad Anonima (YPF) with a 79.38% loss out of my Volatility Portfolio on my subscription sites.
I don’t think these two oil companies–Parsley and YPF–and this entertainment company–Lions Gate–are going to rebound so quickly in 2021 that I won’t be able to rebuy–if I so desire. (Parsley Energy is being acquired by Pioneer Natural Resources. Shareholders are scheduled to vote on January 12 on the merger.)
