tag:blogger.com,1999:blog-4402283548766807872.post801975942618083271..comments2024-03-20T02:26:06.500-04:00Comments on The Blunt Bean Counter: Tax Loss Selling - 2013 VersionThe Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger2125tag:blogger.com,1999:blog-4402283548766807872.post-78824994420555297552013-11-15T09:45:08.840-05:002013-11-15T09:45:08.840-05:00Hi Nathan:
Yes, they convert after approximately ...Hi Nathan:<br /><br />Yes, they convert after approximately 2 years, I dont recall if the exact date is known beforehand, I think the prospectus just says they will be converted without a specific date, however, i do not remember for sure.<br /><br />I have both first and second hand experience. They must first and foremost be viewed as investments, however, depending upon your portfolio, they may fill a portfolio small cap or O&G void and thus the tax savings may be advantegous without much portfolio risk. However, if they are bought soley for tax purposes and not to fill an O&G or small cap portion of your portfolio, then you should not let the tax tail wag the dog, but ensure the investment and tax ramifications make sense.<br /><br />I really have not looked into the hedge aspect, you would need to ask your advisor or determine that yourself. In a case of capital losses that you do not anticipate ever using, flow throughs should be seriously considered.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-16551956834815578732013-11-15T04:18:26.394-05:002013-11-15T04:18:26.394-05:00Interesting, I'd never heard of these flow-thr...Interesting, I'd never heard of these flow-through partnerships. My understanding is that they cannot be practically sold until they convert into mutual funds, which takes ~2 years? Is the conversion date set from the outset, or unknown? It sounds like potentially a great option for someone near or in retirement with capital losses they don't expect to be able to use, but I would be concerned about the risk of the underlying investment, since resources can obviously be volatile. Do you have first-hand (or second-hand I guess as the accountant) experience using these? I don't suppose there's some kind of 'perfect' solution where you could use the flow-through partnership for the tax benefit, and simultaneously hedge against the underlying resource exposure?Anonymoushttps://www.blogger.com/profile/13903169117125578441noreply@blogger.com