Tax loss harvesting

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Jittcal
Jittcal Member Posts: 1 Newcomer
edited January 15 in Filing my taxes

Does tax loss harvesting really benefit on the long run? Also, how does freetaxusa keep track of TLH? Is there a way to connect to a personalized tax consultant in freetaxusa?

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  • MatthewD
    MatthewD FreeTaxUSA Team Posts: 247
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    Hi,

    We do have the Tax Pro product when you sign up for your 2023 account. However, that really is a tax planning question, which is out of our scope of things we can do as a Tax Pro.

    We track your capital loss carryovers, but not specifically a TLH.

    I think what you are talking about is related to a Wash Sale. However, A tax loss harvesting is when you sale a stock at a loss and then buy another similar investment. You realize the loss and use that to offset your other types of income. Just keep in mind that if you do NOT have other capital gains, you are limited to a $3,000 lost, so be very cautious.

    I suggest you speak with an investment manager before you do anything like that. You have until the end of the year to do that.

  • KristineS
    KristineS FreeTaxUSA Agent Posts: 109
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    Hi Jittcal,

    Thank you for the question.

    Tax loss harvesting can be a beneficial strategy to use in a given year, which may or may not lead to a benefit in the long run. FreeTaxUSA carries capital losses forward year in and year out. At this time we do not offer tax consulation as a service.