How much tax loss harvesting can save you If you have any capital losses left over after entirely offsetting your capital gains, then you can apply up to $3,000 of those remaining losses against other types of income, including wages and salaries.Īlthough many investors use tax loss harvesting strategies toward the end of the year, you can harvest tax losses at any time. The current tax rules allow you to use capital losses to offset an unlimited amount of capital gains.
Tax loss harvesting involves selling a losing investment in order to generate capital losses that you can write off on your tax return. But with tax loss harvesting, you can at least get a tax benefit to help offset some of your losses.