Tax loss harvesting and annuity income

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curryitr
Posts: 103
Joined: Fri Jan 04, 2019 8:29 am

Tax loss harvesting and annuity income

Post by curryitr »

Hello!

I am getting ready to receive a SPIA annuity payout of $22,194.53 with the taxable portion of the payment being $16,268.59.

Due to the market downturn I have a sizable amount of losses in my taxable brokerage that I would like to use to offset that annuity payment. I'm not sure how the annuity and brokerage are related on a 1040, but can I offset the taxable portion of the annuity payment by tax loss harvesting or is the most that I could offset the $3,000 annual maximum on claiming a capital loss?

Thanks,

curryitr
exodusNH
Posts: 5881
Joined: Wed Jan 06, 2021 8:21 pm

Re: Tax loss harvesting and annuity income

Post by exodusNH »

curryitr wrote: Thu Nov 24, 2022 12:36 am Hello!

I am getting ready to receive a SPIA annuity payout of $22,194.53 with the taxable portion of the payment being $16,268.59.

Due to the market downturn I have a sizable amount of losses in my taxable brokerage that I would like to use to offset that annuity payment. I'm not sure how the annuity and brokerage are related on a 1040, but can I offset the taxable portion of the annuity payment by tax loss harvesting or is the most that I could offset the $3,000 annual maximum on claiming a capital loss?

Thanks,

curryitr
$3000 is what you'd be able to claim because the annuity income is not capital gains, just like a 401k or traditional IRA.
Doctor Rhythm
Posts: 1693
Joined: Mon Jan 22, 2018 3:55 am

Re: Tax loss harvesting and annuity income

Post by Doctor Rhythm »

Up to $3000 of net capital loss can be deducted.
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