Capital Losses: Rules to Know for Tax Loss Harvesting

Tax loss harvesting requires an understanding of the capital loss rules for deductions, carryovers, and more.

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I spend a lot of my day advising clients on how they can reduce their capital gains tax using the qualified opportunity zone program, which relies on investors having capital gains to invest. With the recent tumult in the market, capital gains are harder to come by, and this is making fundraising for the program more difficult. But a down market, where capital losses can be more common than capital gains, presents other tax opportunities – capital losses can be used to offset capital gains, can be carried forward, and can offset a limited amount of ordinary income like wages.

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Principal, Tax, KPMG