Originally Posted by Amnorix
But what is the point of intentionally losing money for a tax advantage. You don't get a dollar for dollar reduction in your income taxes... For every dollar loss that offsets a dollar of income, you save, say, 40 or so cents in taxes. Why lose a buck to save 40 cents?
I never could quite follow that part of tax shelters, but obviously the math must work somehow since I guess people do intentionally do that kind of thing.
I'm not sure. The only people that are using LPs to intentionally lose money are really wealthy.