Tax-Loss Harvesting Explained

Have you ever sold an investment at a loss and wondered if anything good could come from it? In this video, we break down tax-loss harvesting—a strategic method of using losses to reduce your tax bill. We’ll discuss:

• What tax loss harvesting is and how it works
• How to offset capital gains and ordinary income
• IRS rules like the wash sale rule
• The benefits and pitfalls of using ETFs vs. mutual funds
• How to carry forward losses and when to act

Whether you’re a high-income earner or just trying to be more tax-efficient with your investments, this guide will help you make smarter year-end tax moves. As always, consult a financial advisor to apply these strategies to your specific situation.

This content was provided by Retirement Planning Services. We are located in Knoxville, TN. You can learn more about us, or schedule an insight call by visiting our website at https://www.seriousretirement.com.

Timestamps:

00:00 - Turning Investment Losses Into Tax Savings
00:20 - What Is Tax Loss Harvesting and How Does It Work?
02:07 - Offsetting Capital Gains and Ordinary Income
04:17 - Carryforward Rules and Long-Term Benefits
06:03 - Understanding the Wash Sale Rule
09:07 - Why Tax Loss Harvesting Doesn’t Work in Retirement Accounts
10:10 - When and How to Harvest Losses Effectively
11:08 - ETFs vs. Mutual Funds: Which Are Better for Tax Efficiency?
13:16 - Common Mistakes and Costs to Avoid
15:09 - Don’t Let the Tax Tail Wag the Portfolio Dog
17:03 - Final Thoughts and Next Steps


Advisory services offered through Retirement Planning Services, LLC.

The information in this recording is intended for general educational and informational purposes only, and should not be construed as investment advisory, financial planning, legal, tax, or other professional advice based on your specific situation. Please consult with your professional advisor(s) before taking any action based on its contents.