"People need tax losses," said Jeff Fishman, founder of JSF Financial, a financial planning and investment management firm in Los Angeles. The four main aspects of tax-loss harvesting are that capital losses offset capital gains dollar for dollar. Capital losses can be used to offset capital gains in other assets such as real estate. After all this year's capital gains are offset by tax losses, an additional $3,000 in capital losses may be used to offset ordinary income in any tax year. Finally, any tax losses not used this year can be carried forward indefinitely to offset capital gains in future years.

Source: Forbes December 27, 2018 19:07 UTC