In a hypothetical scenario, two single filers earning $120,000 per year with identical portfolios (each with $50,000 in long-term capital gains and $10,000 in short-term gains) were compared. The filer who harvested $20,000 in losses (a $15,000 mutual fund loss and a $5,000 stock loss) reduced their tax bill by $3,450 compared to the filer who did not harvest losses.

Authors

• Person: Not available Organization: T. Rowe Price
  How tax loss harvesting can help improve your investment returns

Sources

• How tax loss harvesting can help improve your investment returns www.troweprice.com T. Rowe Price via serper

Referenced by nodes (2)

• long-term capital gains concept
• short-term capital gains concept