💰By performing tax loss harvests, investors can turn stock losses into tax savings.
🏠Loss harvesting provides an opportunity to bank market losses and offset gains from property sales.
📈Selling other investments can help reduce taxes owed by subtracting tax losses from capital gains.
📝You can deduct up to $3,000 a year and carry forward any extra losses indefinitely.
💼Converting a pre-tax IRA to a Roth IRA can be advantageous in a down market, resulting in lower taxes.
What is tax loss harvesting?
—Tax loss harvesting is a strategy where investors sell investments that have experienced a loss to offset the gains from other investments and reduce their tax liability.
How much can I deduct from tax losses?
—You can deduct up to $3,000 of tax losses per year. Any additional losses can be carried forward indefinitely.
Can I offset gains from property sales with stock losses?
—Yes, by utilizing tax loss harvesting, you can offset gains from property sales with stock losses.
Is converting a pre-tax IRA to a Roth IRA a good strategy?
—Converting a pre-tax IRA to a Roth IRA can be advantageous in a down market as it results in lower taxes.
When should I perform tax loss harvesting?
—Tax loss harvesting should be done by December 31st to factor it into your tax returns for the following year.
00:02The video discusses turning stock losses into tax savings.
00:26By performing tax loss harvests, investors can offset gains from property sales.
00:53Selling other investments can help reduce taxes owed by subtracting tax losses from capital gains.
01:31You can deduct up to $3,000 a year and carry forward any extra losses indefinitely.
01:44Converting a pre-tax IRA to a Roth IRA can be advantageous in a down market, resulting in lower taxes.
