This arvo could present us with few opportunities . Many losing stocks could be sold to lock in the tax loses and re-bought in the next Fin Year , starting tomorrow . If you see something you liked for a while, drop for no other reason than that … this could be your chance. I too am looking… Needless to say others will be bought by fundies to “boost” their profits . Window dressing is alive and well every end of Mar , Jun , Sep and Dec .
I’m new to investing. Does this really happen?
I understand that “wash sales” for the sole purpose of decreasing taxes is not legal, at least in Australia and USA. That is, someone selling at a loss at the end of one financial year to reduce their capital gain tax liability, to then buy the same stock on the new year.
Juan , don’t worry toomuch about “wash sales” , they are very difficult to prove by ATO or anyone else . Even in the courts it can not be proven as you truly believed that you should sell at that time and changed your mind about the company few days later. It happens all the time.