Do you harvest losses? If so, when and how?

Great video - simple and to the point. Thanks!

Hey, excellent video. You mention that tax loss harvesting can offset up to 3k in capital gains or taxable income. So are you: A. Saving only the tax liability on a 3k capital gain / 3k of taxable income (taxes on the 3k gain) B. Saving up to 3k of tax liability on larger capital gains / total taxable income (For instance, a 10k capital gain with a 3k tax liability) Option A is fine I guess, but option B would be a game changer! Thanks for your help.

Very clear and to the point. Great video.

This was fantastic, thank you so much. I had a company go belly up so I have 5K worth of shares. I would have dropped them all off, but now I know to only end in the red for 3k.

Thanks for the quick, yet comprehensive content - much obliged!

Great video! I can not tax loss harvest this year because I need high NOI to buy real estate this next year. But I will use this strategy in the future.

Happy Holidays! As always, love the videos!

Sounds like something I'd make up to feel better about losing money in the market 😮

Just to clarify, if my taxable income is $100k, and if I sell a stock for a $3k loss, then my taxable income would become $97k, right?

Great video. Thank you for information.

Great explanation!

Great video! The 14% increased account value… over what period of time? Thanks!

As 2022 was a tough year as well as parts of 2023, it is better to "offload" all my loser stocks, or, do it in $3,000 increments per year? Thank you!!

Does the tax loss harvesting ( TLH) strategy have an overall impact on your tax liability? For example, if I have a realized gain into Fidelity brokerage account and unrealized loss into Vanguard brokerage account so once I use TLH strategy it would have an overall / combined effect on my total tax liability. Please let me know. Thanks in advance!

as i buy and hold investor, once i've harvested a loss of say, 10k, i could then swap out a position that has a 10k gain to offset the loss. but in your last example you suggest just letting the losses offset your ordinary income and keep carrying that forward until its all been exhausted (3k per year). why not sell a 7k gain to offset the 7k loss and leave the remaining 3k loss to offset ordinary income all in the current year? after all, i might find another 3k loss next year to harvest. seems like i could reduce my future capital gains taxes by deliberately realizing some gains this year, and still keep my $ in the market by just swapping funds.

This doesn't seem like something you would ever deliberately try and do, but would be great to take advantage of in less than ideal circumstances (aka suffering a loss but utilizing tax loss harvesting to minimize the financial hit). I imagine all your investments making money is the ideal situation and this is a way to recoup some money from an investment going south, right?

Can I continue to buy other securities during the 30/31 day window. For example: can I sell PFE at a loss but continue my automatic investments in other stocks? or do I have to not buy anything during the tax loss havesting window?

I know you can wash sale with an IRA if you bought the same security in an IRA after you sold it in a brokerage but what about 401K? If you have VOO in brokerage and you sold it at a loss but you have a S&P500 mutual fund in 401k of a different provider then vanguard would your next 401k contribution to that S&P500 fund be a wash sale

There is something no one has said in a harvest video I need to know. How many years can the money roll over once you harvest it? I heard someone say you can harvest $6000 in one year claim three that year and three the next. What if you have enough to roll over three years or four? Or should you only harvest what you need for that year or for two years at a time?

Is it required to buy a substitute fund after selling at a loss? Does holding cash void your harvest?

I don't understand why the limit is only $3,000 a year deduction. Like what is that going to do if I had to sell out of a position with a $20K loss. I cannot deduct the other $17K??

When can someone file for Tax Loss Harvesting. Is this done same period as filing your taxes?

What if I’m at a big loss on my last sell but I’m up on my current trade. Say I started year at 60k in portfolio, then I made a trade in November and have 50k in portfolio and closed the position. I opened a new position in December and is currently up 6k and expect it to continue rising. Should I sell the 6k position now and only have a realized loss of 4k for the year and pay less taxes on the gains for the trade? If I carried that 6k trade into next year wouldn’t I have to pay on that 6k?

How can you offset realized loss overall -59k with a short term capital gains on my personal and carry forward the loss to be utilized next year instead of 3k a year til it’s used. I want to increase capital gains.

Hi, IM new to TLH- my $80K target date 2030 MF, bought in 2021, is in Taxable brokerage acct w some dividends (WRONG PLACE I KNOW) , It shows an "overall" , long term loss. Suddenly its miraculously doing better in 2024 (up 20%, but still overall is down ~12% loss since inception , 1)to do TLH does loss have to show specifically during the tax year Im planning doing the TLH ? (Im putting it against another soon to be realized taxable long term investment ($10K FSELX ) thats up 30% since Jan'24 , both funds have .65% fees, 2) is it best to wait, perhaps it too will show gain by end of '24 in this bull market. goal is I want to buy low fee index funds, w minimal dividends for this taxed brokerage acct . I really dislike this poorly managed fund, and have wanted to sell this mod high fee target date fund before another dive in the market,

Is it worth creating a portfolio in a product like Wealthfront that will automatically TLH while allowing you to keep your own portfolio?

Is the $3K amount the same for everyone or is it higher for hedge funds for example? $3K seems like nothing for high value individuals (say Trump for example). How do those big guys do tax loss write offs?

Can you sell a stock at a loss and buy a different stock in different industry that already have in portfolio?

Hi. Thanks for the explanation. If I understand correctly, should you keep track of the losses that you didn’t include for next year and keep doing it every year. In you example, you noted you can carry forward the 2K for next year, so I should keep note of these and know in which year I use it later? Also, do you do this end of year around December beginning? Considering we need to hold it off for 31 days, we will be in next year? These info aren’t clear and an example would have helped. Finally, should long term three fund portfolio investors should even worry about this? If you consider not to sell them until your retirement?

Long term investors shouldn't have to worry about selling at large gains if they let their investment compound over time. The nest egg should be able to live off 1 to 3 % yield then pass on to future generations. Step up basis .

One main thing you forgot to mention is that it's still a LOSS. If you sell it, you're still losing that money. You're just getting a little back from the govt. for selling it. That's it.

I still don't get the point of it. Say you can tax loss harvest to offset all your gain. Yeah, you don't pay any capital gains taxes... but you also don't have any gain. You may as well not invest and achieve the same outcome. No capital gain and no taxes. What am I missing?

Thanks for the video but you are talking too fast esp when people are trying to learn and hear and remember all the details at once.