I would appreciate the math so I can fully understand what my actual out of pocket loss would be in each case. For example, my current understanding is that if I sell the losses in 2011, my actual out of pocket loss is about $6,000 less 15% tax rate. I had a thought that if I sold in 2012, maybe my out of pocket loss would be $3000 less 40%, or about $1800 and $1800 again in 2013. So, the $6000 out of pocket loss is only $3600. I am not sure of my thinking.
thanks for taking the time to display the math. I am so sorry I am confused. It sounds like I have to pay 15% + my regular federal and state tax rate on top of that, no matter what I do?...in one case paying all that on $13,000 and in the other case paying it on $7,000. I thought the 15% was instead of my regular 30% federal tax rate, not in addition to it. Which is it? It also sounded like if I sell my stocks for a loss of $6,000 this year, I will also be able to claim them as a tax loss in 2012 and 2013.
Maybe I didn't explain myself. My botXXXXX XXXXXne is trying to figure out which way to go to minimize my $6,000 loss so that uncle sam can give me credit. Which way is my $6,000 loss minimized the most and what are the two comparison dollar tax credit numbers (sell the stock this year or 2012)?