Harvesting Gains | Calculated Moves

July 20, 2021

You may have heard about harvesting tax losses. That is a strategy where you are selling some stocks at a gain to offset losses that you may have, that you might not be able to deduct. Once you have over $3,000 in net losses for stock sales, that amount carries forward as a capital loss carryforward.

In this case, we’re talking about harvesting gains. Why would you want to do that? Well, if you’re concerned about the capital gains, right, going away, and that may have a large effect on you, you may want to look at the timing and sell the stock and capture the gains right now while you have a lower capital gain rate and you can buy the stock back.

You can’t sell a stock at a loss and buy it right back. That’s called a wash sale rule. However, there is no wash game rule. So if you have a stock that you purchased and you want to sell it now to get the gain to appear this year, before any changes happen with capital gains.

You can sell that stock, capture the game, buy it right back, and now you’ll hold it at a higher basis moving forward.  This is not something you want to run out and do without talking with your broker first and really understanding the consequences that it may have on your taxes. However, for some folks who might be in a low tax bracket right now where the capital gains rate is actually zero.

This might be a strategy. That’s time is perfect for you right now. If you have questions about how to harvest gains, I’m here to help I’m down to Bordeaux at Calculated Moves. Please be sure to subscribe to our page for more news like this and follow us on Facebook.

Donna Bordeaux, CPA with Calculated Moves

Creativity and CPAs don’t generally go together.  Most people think of CPAs as nerdy accountants who can’t talk with people.  Well, it’s time to break that stereotype.  Lively, friendly and knowledgeable can be a part of your relationship with your CPA as demonstrated by Donna and Chad Bordeaux.  They have over 50 years of combined experience as entrepreneurial CPAs.  They’ve owned businesses and helped business owners exceed their wildest dreams.   They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.