10 Tips for Harvesting Investment Losses

Tax-loss harvesting can cut taxable income by up to $3,000/year, but wash-sale rules span 61 days and rebuying can raise future taxable gains.

• Beyond stocks: Tax-loss harvesting applies to stocks, bonds, mutual funds, ETFs and options in taxable accounts only — not houses or retirement accounts; crypto has different, sometimes more favorable rules.
• $3,000 deduction matters: Capital losses reduce AGI (unlike itemized deductions), which can affect Roth eligibility, ACA/Medicare premiums and financial aid; excess losses carry forward indefinitely.

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