How Does Tax-Loss Harvesting Work?

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How Does Tax-Loss Harvesting Work?

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Күн бұрын

How Does Tax-Loss Harvesting Work?
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Пікірлер: 24

@reilou5420 Жыл бұрын

Taking a tax class rn, love how you guys mention the wash sale rule

@ziggyess Жыл бұрын

I love tax loss harvesting. Schwab intelligent portfolios does it for you automatically. It’s awesome!

@chicolopez5150 Жыл бұрын

One potential pitfall is that if you don't have significant gains every year, and are banking the loss, you might end up wasting a portion of your loss offsetting capital gains that would have been taxed at the 0% rate anyway. For cap gains under about $42,000 (single), the rate is zero. So you really want to use losses to offset gains up to that amount and never above.

@yougotnulled2983 8 ай бұрын

These losses get carried forward every year and you choose when to use them. So that doesn't exist.

@AdonisGaming93 4 ай бұрын

yes, but if you are still working, even if you don't take any gains, you can use the 3000 to offset your salary income.

@tjwiersma4406 Жыл бұрын

Please help me understand this better. Tax-loss harvesting is so you pay less in taxes this year? Doesn't that give you higher long term gains to pay tax against in the future? Then in the future in retirement you have less deductions (because your children are grown and your house is paid off) to lower your total taxable income.

@lionelhuts875 Жыл бұрын

The idea is that it's better to use losses to offset income/short-term gains vs. using losses to offset long-term gains. In other words, offsetting long-term gains with losses is a bad strategy because long-term gains are already taxed at a low rate. If you can use those same losses to instead offset higher-taxed gains (e.g. income and short-term gains), it's a good strategy.

@Sharpshooter649 Жыл бұрын

So if I am low income a long term capital loss is useless because it will just wash something that was going to give me a 0% tax bill anyway.

@ronaldswanson8405 Жыл бұрын

So what exactly is tax-loss harvesting? Is it a process? A rule? Help me

@speshojk1 9 ай бұрын

Yeah the video doesn't do a good job of explaining the mechanics at all. They only say that you sell at a loss and then harvest the loss in the future when you have a capital gain, which is the obvious part. I think most people here are looking to understand the actual mechanics and this video doesn't provide that at all.

@ziggyess Жыл бұрын

Automatic tax loss investing with Schwab intelligent portfolios.I love it!

@kristine7304 Жыл бұрын

I have about 2k in capital gains this year. I have not sold any losing companies yet. If I sell 2k in losses before the end of the year without buying them back, will that cancel out my capital gains for the year so I don't have to pay taxes on the gains? Thank you.

@yougotnulled2983 8 ай бұрын

yes

@christianphelps2116 8 ай бұрын

What do you think the “net advantage” is considering your entry price is now significantly lower? Harvesting the losses, but also owing capital gains to “break even” that the losses will offset. I suppose every scenario is different, but I’m curious if there’s a general situation where harvesting is most beneficial. Or a simple calculation to see just how beneficial it is

@g-man5091 Жыл бұрын

First of all, thank you very much for providing us with valuable and helpful information. I have a question sir. What if I bought a stock 2 years ago. I bought it in 2021. If I sell it at a loss. Does it still count as loss if I sell this year? or it has to be that same year.

@Nik-wo7hk 8 ай бұрын

I believe it still counts as a loss

@JoshGtarsP Жыл бұрын

Will I trigger a taxable event if I sell a stock that is in my Roth IRA, but that same stock is also in a taxable brokerage account? Thanks

@lionelhuts875 Жыл бұрын

@Edgar-uw6vl 8 ай бұрын

So lets say $3k tax loss at 20% taxed you only saving $600 am I understanding this correctly?

@yougotnulled2983 8 ай бұрын

Yes, your tax liability will be $600 less because you would have $3k less in taxable income, but its "free" money. IE: I buy spy it drops 3k, i sell spy and buy voo which is basically spy, I technically never left the market & I'm still exposed to the same upside, but now my taxable income is 3k less.

@littlesparklysweets5500 4 ай бұрын

@@yougotnulled2983do we need to buy another stock after we sell to get the tax loss harvests benefits

@ricvanwinkle1665 Жыл бұрын

I love all the FUD. I will be the richest man on my block as it’s all dollar day specials with a 5-10 year hold for me. Meme stock multimillionaire and ready for my next harvest. GTII FNGR AVCT 🤣🤣🚀🚀🚀🚀. Man it don’t get much better than this and all my friends are scared to put a dollar in the market as I’m placing house bets across the board. The rich don’t run from bear markets, they invest. Welcome to become a millionaire in 3 east steps.