Tax Loss Harvesting

Forum|Forum|2 years ago
December 29, 2023
1 reply
0 views

after using long term losses against short term gains, i still have a remaining loss of -$13000 for 2023. Can i use this remaining loss to offset interest income and dividend income completely, only up to $3000?

thanks

VolvoGirl

Employee

Yes it will offset other income. If you have a net loss for the year you can only deduct 3,000 (1,500 MFS) max on your tax return. The rest you have to carryover to next year. You have to report the carryover every year until it's used up. You can't skip a year.

SirtaxedalotAuthor

thank you for the excellent speedy reply! just so i am clear, is the $3000 max AFTER considering all interest income and dividends, or before? If for example, i have $15000 in interest income, can i reduce it down to $2000 or only down to $12000? thanks again

VolvoGirl

Employee

No you can only reduce all the other income by 3,000. Interest and dividends are part of other income. So after all income. The total losses can only net against gains, not interest or dividends.