general
Tax Loss Harvesting
Selling investments at a loss to offset capital gains and reduce taxes.
Tax loss harvesting offsets gains and up to $3,000 of ordinary income per year, with excess losses carried forward.
Pair this with the capital gains tax rates guide, the capital gains tax strategies guide, and the taxes on investments guide. It also helps to know the difference between capital gains vs. ordinary income.
How sharper.tax Helps
sharper.tax identifies capital gains on your return and estimates how much tax loss harvesting could save you. We also flag wash sale risk so you can harvest losses without running afoul of IRS rules. Sophisticated tax planning used to require a high-end CPA — we make it available for free.
Sources
The information above is educational and not tax advice.