Why I Love December 31st Every Year!!!

[Recyclersteve]

December 31st each year is one of my favorite times each year, no ifs ands or buts about it. Let me explain...

Think about it this way. You have accountants everywhere telling people to throw things away to simplify their tax situations.

EXAMPLE: I worked for companies in three different industries (air conditioning, office equipment and computers) where accountants told us to throw things in the dumpster at the end of each year so we didn't have to count it in our inventory the following year. It would simplify our record keeping and reduce the amount we'd have to pay for tax prep. I remember seeing LOTS of dumpsters (notably in commercial and industrial parts of town) that were filled to the brim (actually where the top was even sticking up) because they were so overloaded with stuff being disposed of.

Some of the stuff could be fixed easily (for instance, an office chair with 1 wheel missing). Other stuff was defective and could be scrapped for the ABC's (aluminum, brass and copper). I just wish I kept a log of all the stuff I've found because I've found a lot! Rain or shine I just got a full tank of gas and will be driving around quite a bit next Tuesday.

ANOTHER EXAMPLE: The stock market. We've had (so far at least) what will almost certainly end up being a very solid year for the stock market. Accountants everywhere are telling people to sell losing stocks so they don't have to pay as much in capital gains taxes for the year. Here is the rub. Normally the market closes at 4pm EST on market days. On 12/31 it will close early (I believe 1pm EST). There will almost certainly be people who are stuck because they need to sell something desperately to save on their taxes.

Now there is always after hours trading, which is a bit like the Wild West vs. modern civilization. But, if you can sell something for perhaps 2-4% below the closing price and save thousands on your taxes, why not. I've been copiously going through the after hours trading for 400+ stocks every year and found some nice little nuggets over the years. Of course, these are NOT guaranteed profits. What if bad news comes out the next day and the stock is down 10-20%? That is the chance you take, but normally there isn't a lot of true news that occurs around the holidays. I'm willing to take my chances because I've been active in the stock market for well over 20 years.

I have already told my wife that I will be SWAMPED next Tuesday, rain (or snow) or shine!!

Anyone else have any stories or thoughts about this New Year's Eve phenomenon?

[shinnosuke]

Mrs. shinnosuke was born on December 31st in Japan where they also allow income tax deductions for dependents. It's the perfect date to be born. The parents get a whole year's worth of deductions without having to change a single diaper.