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A good part about cases where your stocks lose value is that they might provide you with a possible tax write-off. Any short-term losses that you suffer from the sale of stocks might offset the short-term gains. You can sell your stocks if they are losing value to help control any taxes you have to pay. You could do this in particular during the later part of the year if you have anything you have held for a while and you need to get rid of it. While you might lose money from the sale of that stock, you will at least keep your taxes from being too high.
While filing taxes, the short-term gains and losses will be reported separately from and long-term gains and losses from a more advanced fund that non-day-traders might use. Review all your positions to determine if selling your stock at a given time is appropriate for your tax control purposes. Contact a local accountant or other tax preparation expert in your area for added information on what can be done to lower your tax burden.
