Tax Loss Harvesting Strategies Guide (2026) - Offset Gains & Income
Tax loss harvesting strategies: offset capital gains, wash sale rules, carryover losses, and year-end harvesting tactics.
Summary
Tax loss harvesting: sell losing investments to offset gains. Losses offset gains, then up to $3,000 ordinary income. Excess carries forward indefinitely.
Key Steps
- 1Offset strategy: losses first offset gains of same type, then other gains.
- 2Income offset: remaining losses offset up to $3,000 ordinary income annually.
- 3Carryover: unused losses carry forward indefinitely to future years.
- 4Wash sale rule: no repurchase within 30 days before or after loss sale.
- 5Year-end timing: harvest losses before December 31 for current year tax benefit.
- 6Reinvestment: buy similar but not identical securities to maintain portfolio exposure.