tax-loss harvesting question

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seanbaby
Posts: 23
Joined: Sun Dec 02, 2018 11:08 am

tax-loss harvesting question

Post by seanbaby »

Hi,
To take advantage of tax-loss harvesting, If I'm getting about $8000 in interest/dividend payments through my tax dis-advantaged account, does it mean, I can show up to $11000 in losses through sale in stocks per the IRS rules?? Is my understanding correct? Thanks.
fabdog
Posts: 2163
Joined: Wed Jan 16, 2013 1:59 pm
Location: Williamsburg VA

Re: tax-loss harvesting question

Post by fabdog »

no.

Dividends and interest are not linked to capital gains. They are not impacted by tax loss harvesting, except to the extent that you can deduct $3K of capital losses against your overall income.

Tax loss harvesting offsets capital gains with capital losses. If you have more losses than gains, up to $3K can be deducted each year and the remainder carried forward

This WIKI article has useful information

https://www.bogleheads.org/wiki/Tax_loss_harvesting

Mike
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