The brighter side of capital losses – There’s opportunity in that red ink
Abstract: Capital losses are an almost inevitable part of investing. But they can be used to lower tax liability and reposition one’s portfolio. This article explains the basics of capital losses, including the “wash sale rule” that disallows some losses, and shows how to incur capital losses without running afoul of the rule. A sidebar discusses the implications of Congress’s two-year extension of the 15% rate on long-term capital gains.