Great video and advice, you cleared one doubt quite clearly. Can you please advise on a short scenario as follows: I am carrying over losses from one year to another and using the losses against my earned income, $3000 per year. If I miss claiming the carried over loss in one year, can I continue by picking up in the following year, or put simply, can I skip a year (forget) of loss carryover and re-continue next year? Many thanks.
@haroldped3 ай бұрын
So . . . lets say I carryover $10,000 in capital loses from 2023. This year, I net $15,000 in capital gains. Do I subtract the entire $10K loss from 2023 - or just $3000?
@Sophnguyen7778 ай бұрын
Question: are you using direct index method to do tax loss harvesting?
@sujanpoudel22 жыл бұрын
Hi, thank you for your video. Let's say I have lost about 150k in options trading so far this year and hoping to do well next year for example let's say I made 150k, can I then deduct 150k from this year's losses to offset my gains in next year's tax filing? Or should I sell stocks that I have capital gains to offset both gains and losses this year? I am hoping if I carry 150k losses next year I can claim more than 3k if I have a substantial capital gain.
@wealthfrontvideos2 жыл бұрын
If you don’t have gains to offset in the current year, and still have losses after offsetting 3k in ordinary income, you can carry forward those losses to future years. Regarding any other strategy in which you intentionally incur capital gains, I’d really suggest determining that with a licensed tax professional that knows your current situation.
@helloearthcalling8749 Жыл бұрын
Really well explained
@wealthfrontvideos Жыл бұрын
Thanks!
@calebmccalla96752 жыл бұрын
Thank you for the videos!
@wealthfrontvideos2 жыл бұрын
Glad you like them!
@AlejandroLopez-zo7ki2 жыл бұрын
Thank you !!
@wealthfrontvideos2 жыл бұрын
Thanks for watching 👋🏼
@andrewmkling2 жыл бұрын
Great explanation!
@wealthfrontvideos2 жыл бұрын
Thanks!
@maxhmeks10 ай бұрын
does that apply to losses in crypto as well?
@wealthfrontvideos10 ай бұрын
In many cases yes
@KibsorKibn2 жыл бұрын
Great upload
@wealthfrontvideos2 жыл бұрын
Thanks for watching ✌🏼
@RadhikaMeera2 жыл бұрын
great explanation
@wealthfrontvideos2 жыл бұрын
Thanks 🙏
@nathaniverson Жыл бұрын
Great video. Would a gain from selling physical precious metals be considered a capital gain that tax loss harvesting could be used to offset?
@wealthfrontvideos Жыл бұрын
If it’s considered a capital gain you might be able to use harvested losses to offset gains. Make sure you check with a tax professional first.
@xinchanwang46929 ай бұрын
Does capital losses offset dividends and interests?
@ridenda67camaro6 ай бұрын
lets say i have 3 long term stocks sock a gains 3,000 stock b gains 4,000 stock c losses 8,000 how is this calculated? 7k in gains and 8k in losses =-1,000 or have to to pay 7k capital gains at 15% (1,050) 8k-1050=5950 in total loss then carry forward if cant use?
@SCPVIDEOPRODUCTION2 жыл бұрын
Nice video. I wish you addressed how to apply the tax loss to short term capital gains instead of long term capital gains. If that is possible? What if your single and total income is less than $50K a year? Do you need tax loss harvesting?
@wealthfrontvideos2 жыл бұрын
Thanks! Short term capital gains can be offset the same way long term capital gains can. The IRS allows losses to offset both types of gains. If you make under 50k, you can still use harvested losses to offset up to 3k in ordinary income so it’s still valuable. Either way, if you can’t use your losses this year, you can always carry them forward.
@wealthfrontvideos2 жыл бұрын
@@user-tm1kb3fq4m Yes, if you use an accountant, you'll want to keep a record of your losses carried over from prior years. If you're using a software-based solution like TurboTax, they'll keep track of it for you.
@Loso561 Жыл бұрын
Do I have to sell my shares for a loss or is the loss percentage on the brokerage statement sufficient to qualify for tax loss harvesting
@wealthfrontvideos Жыл бұрын
You have to sell your shares. An unrealized loss is on paper, but a realized loss occurs when you sell your shares. You must realize the loss to use it.
@h.jnguyen29392 жыл бұрын
Hi! I have a question. Can I buy a stock at current price, and then sell the same stock for a loss in different accounts? Because I want to keep that stocks. Thank you.
@wealthfrontvideos2 жыл бұрын
Hi you can do that as long as you don’t buy the same stock in any account for 30 days. As long as you do that, you’ll avoid creating a wash sale.
@damis2372 Жыл бұрын
I made $50k in profit on stocks in 2021. I had to pay taxes on the $50k gains. If I lose $30k on stock sale this year, can I carry back the losses of $30k to last year? Personal tax return and not a business.
@wealthfrontvideos Жыл бұрын
Unfortunately the IRS doesn’t allow you to offset prior year gains in the same way you can carry forward losses 😔
@byunTAEuP6 ай бұрын
Where do you set aside current stocks? What kind of plan?
@enquirix15722 жыл бұрын
hey so i have a question. my uncle is in usa and he owns 3 hospitals and so he has to pay quite a lot of taxes recently i spoke to him and he said he bought stocks worth 80,000$ 20 years ago and now they are worth around 1300$ can we sell the stock and do a tax reduction and cut the taxes on the hospitals he owns please reply that would mean alot
@wealthfrontvideos2 жыл бұрын
Potentially! Any harvested losses can offset up to 3k ordinary income and capital gains. blog.wealthfront.com/tax-loss-harvesting-101/
@wealthfrontvideos2 жыл бұрын
Hey, we'd love to hear from you! Let us know if you liked this video and what else we can add to our pipeline. Subscribe to our channel here: kzfaq.info
@noel888 Жыл бұрын
For the first time in many years since i last entered a $3000 carryover loss, I see where i have to ADD it this time to my taxable income on Line 7, so says Schedule D. Where do i see on either the Federal or state NY forms the benefit of that deduction? I recall there use to be an ADD and a Subtract line for such a function, but do not see such on these 2022 forms.
@wealthfrontvideos Жыл бұрын
I recommend reaching to a licensed tax professional!
@noel888 Жыл бұрын
@@wealthfrontvideos I thought I was watching your video.
@wealthfrontvideos Жыл бұрын
@@noel888 Not when it comes to a question that depends on your personal tax/financial situation. Your question is super important but it's not one that we can answer in this forum.
@Jallelab99141Ай бұрын
My man, this is an accounting question. Get yourself a cpa!
@greysign2 жыл бұрын
Does tax lost harvest matter when the money is in a Roth IRA?
@wealthfrontvideos2 жыл бұрын
Unfortunately, the IRS doesn't allow any type of Tax-Loss Harvesting with an IRA. If you're referring to wash sales, yes actually the activity within IRAs can incur a wash sale. Does that answer your question?
@greysign2 жыл бұрын
@@wealthfrontvideos Thank-You. I’m just wondering what the benefit of having a Roth IRA in a Wealthfront is. If it’s a regular investment account perhaps Wealthfront auto tax-loss harvesting comes in handy and worth the fee, but what is the benefit of having a Roth IRA in a Wealthfront? Thanks.
@ladylyonteeth3952 Жыл бұрын
3000.00 is not much. There is no loss carry back. One could easily outlive their large loss carry forward, while being stuck with big tax bills. Someone should do a video on how to manage in the same year, which is the only time losses and gains in numbers over 3k can be offset to avoid big tax bill. Nobody does that for some reason.
@wealthfrontvideos Жыл бұрын
That’s too easy of a situation to do a video on 😁. Losses offset gain 1:1 and you don’t need to worry about anything else. Done ✅
@colindaly91848 ай бұрын
Just found out about this 3years later so I get to amend now ig so I guess the compilement is the winner