Forbes has published an article, “7 Wash Sale Facts To Know Before Selling Stock For Tax Loss Harvesting”, which discusses strategies to prepare for future investments. The article begins as follows:
Are you bullish about the stock markets in 2023? If so, you may be looking at year-end strategies to prepare for brighter investing horizons. For example, after the stock market declines of 2022, you may now hold securities—whether stocks, ETFs, or mutual funds—that would generate capital losses if sold. Those losses could then be used to offset capital gains and a limited amount of ordinary income.
Called “harvesting” capital losses, this is a popular year-end strategy. But beware: the IRS rules on wash sales can wreck your tax planning.
Click here to see the full article: “7 Wash Sale Facts To Know Before Selling Stock For Tax Loss Harvesting”
Posted by Marin Larkin, Associate Editor, Wealth Strategies Journal.