In a hypothetical scenario where an investor sells an investment at a $30,000 loss and realizes $25,000 in gains, the investor can offset the entire gain, use $3,000 of the remaining loss to offset ordinary income, and carry forward $2,000 for future years, resulting in an estimated total tax savings of $4,800, assuming a 15% long-term capital gains tax rate and a 35% ordinary income tax rate.

Authors

• Person: Not available Organization: Vanguard
  Tax-loss harvesting explained | Vanguard

Sources

• Tax-loss harvesting explained | Vanguard investor.vanguard.com Vanguard via serper

Referenced by nodes (2)

• ordinary income concept
• long-term capital gains tax concept