Tax Swap

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Dictionary Says

Definition of 'Tax Swap'

A method of crystallizing capital losses by selling losing positions and purchasing companies within similar industries that have similar fundamentals.
Investopedia Says

Investopedia explains 'Tax Swap'

Investors can circumvent the IRS "wash sale rule" and utilize tax benefits of capital losses by selling securities that they are losing money on and buying others that have very similar characteristics. By tax swapping there is the presence of basis risk since the stock being sold and the stock being purchased are typically not identical and will react to different market factors individually.
Search results for

'Tax Swap'

  • Get Active In Your Bond Portfolio

    http://www.investopedia.com/articles/08/bonds/active-management-bond-portfolio.asp
    ... grade bonds. (Read more in An Introduction To Swaps.); Tax swap - This type
    of swap is very common with taxable investors. Like the ...
  • CFA Level 1 Study Guide - Derivatives - Swap Markets and Contracts ...

    http://www.investopedia.com/exam-guide/cfa-level-1/derivatives/swap-markets-contracts.asp
    ... Intramarket Sector Spreads; 14.32 Options and their Benefits; 14.33 After Tax Yield
    of a ... Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...
  • Tax-Saving Tips For Canadian Taxpayers

    http://www.investopedia.com/articles/pf/07/Canadian_tax.asp
    ... gap between your incomes. Another area where you can create income tax
    deductions is the portfolio-for-house swap. If you are in ...
  • The Advantages Of Bond Swapping

    http://www.investopedia.com/articles/bonds/09/investors-bond-swapping.asp
    ... financial advisor to ensure that your bond swap execution strategy helps you meet
    your investment goals and that you understand the tax implications of ...
  • What is a "gypsy swap"?

    http://www.investopedia.com/ask/answers/08/gypsy-swap.asp
    ... offerings, be sure to read Understanding Rights Issues.) The gypsy swap is broken ...
    nor loses money from the transaction, although it may have tax consequences. ...
  • Update Your Variable Annuity With Section 1035

    http://www.investopedia.com/articles/retirement/08/section-1035-exchange.asp
    ... you use a 1035 exchange, you can swap outdated variable annuity contracts for more
    current and efficient ones while continuing to defer the income tax on the ...
  • Uncle Sam's Surprise: Unexpected Sources Of Taxable Income

    http://www.investopedia.com/articles/tax/09/owe-nothing-federal-tax-return.asp
    ... Suppose that you approach your local veterinarian for a business trade: you swap
    your graphic ... of this form and, in turn, report this amount on your tax return. ...
  • CFA Level 1 Study Guide - Fixed Income Investments - After Tax ...

    http://www.investopedia.com/exam-guide/cfa-level-1/fixed-income-investments/after-tax-yield-taxable-security.asp
    ... 8.21 Asset Impairment. 9. Liabilities: 9.1 Introduction; 9.2 Current Liability Basics;
    9.3 Income Tax Terminology; 9.4 Tax Deferred Liabilities; 9.5 Permanent Vs ...
  • CFA Level 1 Study Guide - Liabilities - Adjustments To Financial ...

    http://www.investopedia.com/exam-guide/cfa-level-1/liabilities/financial-statement-adjustment-tax-rate-changes.asp
    ... 8.21 Asset Impairment. 9. Liabilities: 9.1 Introduction; 9.2 Current Liability Basics;
    9.3 Income Tax Terminology; 9.4 Tax Deferred Liabilities; 9.5 Permanent Vs ...
  • CFA Level 1 Study Guide - Corporate Finance - Tax and Bankruptcy ...

    http://www.investopedia.com/exam-guide/cfa-level-1/corporate-finance/tax-bankruptcy-costs.asp
    ... Intramarket Sector Spreads; 14.32 Options and their Benefits; 14.33 After Tax Yield
    of a ... Flows on Put-Call Parity and the Lower Bounds; 15.36 Swap Markets and ...

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