More thoughts on taxes thanks to Leisel
You may recall Leisel had a question about taxes. I kept thinking about her question yesterday with a nagging thought that I was missing something from her post.
I was. I think another point she correctly made was this. Every time I make a trade, I take as much as I can and buy another stock. In theory, I hope to repeat this successfully over and over again.
But what happens when it's tax-time? What if my money is tied up in a position? The questions she raised made me realize that I need to reserve part of the profits so that enough money to pay the taxes is free and available to use. I don't want to be forced to sell at a loss just because it's time to pay up!
Comments are great and very much appreciated!