The stock is at an all-time low, but likely to increase significantly. The question is should I realize losses now ($20k) or (assuming the stock returns to its target) realize losses in the future ($10k of loss). The reason I'm hesitant to realize these losses now is the stock target is higher and I would only be offsetting long-term capital gains. I don't have any short-term capital gains in 2021. If it matters, the current $20k capital loss is evenly split as long-term/short-term capital loss and is all in the same stock.
I do understand the tax treatment and being able to roll some the loss forward each year after applying to up to $3000 of other income types. I just want to make sure I'm not missing something in my logic - it doesn't feel like I should realize these losses when I only have a 15% tax liability on the long-term capital gains. Thank you!!
