CU professor calls “BS” on Romney’s 13 percent tax rate claim

[TruthAnalyzed]

58. My point is

you can't rationally create a loss to offset a gain, in order to avoid taxes. If you do that, you will end up with $0 net in usable capital. It's completely irrational. It doesn't matter if you create losses in stock, funds, derivatives, forex, commodities... a loss is a loss is a loss.

The only way I could see it making sense would be to delay realizing gains because your tax rate will change soon, which is probably why the SEC instigated that 60-day rule on hedging the same stock. Either way, you're not saving money by creating losses.

I fail to see how a hedge could be used as collateral for a loan. A hedge has no inherent value, it wouldn't have value as collateral.