In our region we are getting hit by Covid hysteria and low oil prices. It does however seem that folks are more optimistic today than they were on Monday. That will be the key because, in my opinion, the overreaction has been severe.

We're generally on the same page re: the markets. I agree, but at least we are (have) headed the right direction. For now.

Tuesday I harvested some losses. I had some under performing funds and can use the loss and put the funds into a fund that has been outperforming peers for funds of their type. Probably will be more capital gain distribution taxes next year as fund managers buy and sell to capture stocks to help their funds.

Bryce

I emailed my US Senator yesterday suggesting that individuals be allowed to write off 100% of capital losses against 2020 income rather than just $3000.

Might be an idea for others to do the same

Oh boy, let's see how this opened can of worms plays out!

You can write off all capital gain losses if you have gains above losses. You can only claim the 3k off of your ordinary income or AGI. So for example you have 10K of capital gain distributions (due to fund managers buying and selling within funds) and you create 15K of losses in gains. You can write off or claim 13K of losses in one year and pass the other 2k on into the next tax year, but your thoughts are OK by me as well. I do feel more for those that have to take out RMDs when their capital has decreased as it has. We have one RMD in a fixed fund and that one we will take soon. We are hoping to wait on the non fixed ones to see if we can get more recovery. We send ours directly to charitable Orgs. and we want continue to do so, but will hold off a bit this year.

Bryce

Why would you assume that?
I try to keep a reasonable amount of cash on hand for opportunities that come up.

That doesn't mean that it is unreported or untaxed income

#1. Cash is king.
#2. The Gov't forces people to cheat, steal and lie, therefore turning law abiding citizens into "criminals" by their standard.
#3. Accepting cash absolutely does not mean someone isnt paying "their fair share", in fact maybe the opposite. Small business, especially those with employees, gets taxed and insured to the point of being hard to make a living. So they are forced to get...creative...to get a little relief. In reality, small businesses with employees probably pay substantially more taxes than a sole proprietor or single filer.

Here's something that burns my arse. If a retired person on SS is getting $1200 a month, the Govt deems you are making "enough money" and you're not allowed to work for extra money until you are full retirement age. Who makes it on $1200 a month? At the same time they are keeping everyone under (66 1/2 yrs in my case) stifled, they hand out loads of cash to young healthy people (and illegals) that are just too lazy to work, while every business in town has "HELP WANTED" signs in the window. Just burns me up............SO.......why do people cheat?? hmmmmm?

Like by holding a gun to your head?

The government has never been able to force me to abandon my personal integrity. In fact it would be impossible for them to do that.

It's not about personal integrity. It's about hard working people trying to keep a little bit of what's theirs to make a living and make ends meet. I guess you're a better human being than most, so at least that will help you sleep at night! Meanwhile, the government wastes millions of our dollars on coffee, donuts and prostitutes every year!

I know 2 wrongs don't make a right, it's just s frustrating spot they put people in.

I wouldn't call that a WASTE!

You are allowed to work up to a certain amount on SS before full retirement age without penalty and after without any.

The DOW is dropping like a gut shot fawn this morning.

Trying to recover though. But it's Friday.

The only way a small business would pay more tax then a sole business owner is if you claimed the taxes they withheld for their employees or the UE taxes and workmens comp etc. several small businesses don't trigger some of those amounts. Having completed taxes for many small businesses, sole owner, partner LLC etc. there are a multitude of ways that businesses can do revenue and expense management to legally lower their taxes. Especially those that hire family members etc. The tax rates or brackets don't change if you are a small business, sole owner or individual other than SS which is about 12.95 taxable versus a W-2 filer which is 7.62.

Bryce