Investment Losses Can Sometimes Help at Tax Time
Have Investments That Lost Value This Year?
Year-end is a common time for investors to review their portfolios and consider tax-loss harvesting.
Capital losses can generally be used to offset capital gains — and, in certain situations, up to $3,000 of other income. Unused losses can carry forward to future years.
But there is an important rule to remember:
⚠️ The Wash-Sale Rule
If you sell a security at a loss and purchase the same or a substantially identical investment within 30 days before or after the sale, the current loss deduction may be disallowed.
Even automatic dividend reinvestments can sometimes create an unexpected wash sale.
Taxology Tip: Investment decisions should make financial sense first — but understanding the tax consequences before you sell can help avoid surprises.
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