The concern I keep coming back to is that I would only be offsetting long term capital gains ($12k) at a 15% tax rate ($1800 tax liability). If I sold this same stock at a loss next week (2022), it could offset short term capital gains or income instead...
But returning to the 2021 scenario: I have some tax benefit if I sold all this year ($1,800 in long term capital gains tax offset, plus marginal tax of $3,000 this year, probably around $1,050). This would leave a capital loss carryover of $5,000 to use in upcoming years, potentially offsetting another $3,000 in income or cap gains in 2022, and another $2,000 in 2023. (All assuming I don't have any long term capital gains to offset in either of those years).
Assuming 35% marginal tax rate, this would amount to another $1,050 and $700, respectively.
In summary, I stand to benefit from:
$1800 + 1050 + 1050 + 700 = $4600 in tax benefit by harvesting these losses in 2021, and would be able to pick up the same stocks after 31 days if I wanted to re-invest in them. Based on my 250 shares owned, this would translate to a buffer of $18.40/share increase where I could re-buy and still be favorable.
Am I looking at that correctly?
