Finance Notes

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Capital Gains/Losses

You have $3,000/year in short-term capital losses to claim. You can deduct this from your capital gains or income for the year and the residual losses can be carried over to the next year.

Capital gains can be offset completely with capital losses

TODO Example with capital losses > gains

  • Short-term gain = $0
  • Short-term loss = $20k
  • Short-term gain = $8k
  • Long-term loss = $1.5k
  • Losses offset your 9.5kincapitalgainsandthusyouwillhavenocapitalgainsfortheyear.Additionallythe9.5k in capital gains and thus you will have no capital gains for the year. Additionally the 10,500 (not correct completely)

Example with capital gains < losses:

  • 40k income
  • $600 short-term capital gains
  • $850 short-term capital loss
  • $1025 long-term capital gain
  • $7,500 long-term capital loss

Total capital gains (long term + short) = 1,625,whichcanbeoffsetviayourcapitallosses.1,625, which can be offset via your capital losses. 3,000 excess capital loss is deductible against ordinary income for the next year.

Capital Losses

Real Estate


  • 15 vs 30 year
    • Less years = lower interest rate = less cost over time
    • Own the home sooner
    • Cost more per month lower the # years to pay it off
  • 30 year mortgages may allow for extra payments


  • Bonds
    • A promise to
  • ETF
    • vanguard
      • institutional shares
        • high minimum (5mil+), used for companies and institutes, e.g. for a 401k
      • investor shares
        • actively managed funds, high fee
      • admiral shares
        • where most of the index funds exist
        • lowest fee
  • Index Fund
    • Group of investable stock assets