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Tax-Gain Harvesting - The Wealthy Accountant

The Wealthy Accountant·@HashtagPLUS·about 1 month ago
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Tax-gain harvesting takes advantage of unused low tax rates to increase basis and reduce future taxes. Tax-gain harvesting can reduce taxes significantly more than tax-loss harvesting due to the limited amount of losses that can be deducted and wash sale rules. I have published on tax-loss harvesting in the past where I outlined the severe restrictions placed on tax-loss harvesting. There are even instances where tax-loss harvesting can increase your taxes! Tax-Gain Harvesting Review First A quick review of tax-loss harvesting before examining the benefits of tax-gain harvesting. First, you can’t just sell a stock at a loss and immediately buy it back. That is a wash sale and the loss is disallowed. Your loss is suspended when you buy an identical or substantially identical stock within 30 days before or after the stock sold at a loss. You can’t sell a stock at a loss in non-qualified account and then buy it back in your IRA, Roth or traditional, either, within 30 days and still get the deduction.…

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