Tax-Loss HarvestingNow, if you still have savings in a taxable account, here's where tax-loss harvesting can help you. The Catch - Wash SalesHowever, it's important to know that the IRS has rules designed to stop the most basic of tax-loss harvesting strategies. Tax-loss harvesting may contribute to this phenomenon, and if you are tax-loss harvesting a stock, you may miss out on January gains because you need to be out of the stock because of the 30-day wash sale rule we've just discussed. That's why tax-loss harvesting now, or basically any month other than December, can be a good idea. So depending on how and where you invest, tax-loss harvesting may be a way to improve your after-tax returns.
Source: Forbes November 09, 2018 02:03 UTC