Debunking an investing myth I see often 👇🏼 ⠀⠀⠀⠀⠀⠀⠀⠀⠀ The “$3000 deduction” you hear about when it comes to tax loss harvesting only applies to your gross income ⠀⠀⠀⠀⠀⠀⠀⠀⠀ I’ve seen a lot of people get this mixed up with the amount of losses you can deduct from other gains that you lock in ⠀⠀⠀⠀⠀⠀⠀⠀⠀ They’re 2 separate types of “write offs” ⠀⠀⠀⠀⠀⠀⠀⠀⠀ There is no cap on the amount of losses you can write off against capital gains that you lock in ⠀⠀⠀⠀⠀⠀⠀⠀⠀ For example, if you had $1 million in losses that you locked in across your taxable accounts, you could deduct the full $1 million against up to $1 million in gains that you lock in ⠀⠀⠀⠀⠀⠀⠀⠀⠀ Where the $3k comes into play is something called the “net capital loss deduction” ⠀⠀⠀⠀⠀⠀⠀⠀⠀ In a nutshell, this applies when you still have losses “left over” after writing off all of your losses against your gains ⠀⠀⠀⠀⠀⠀⠀⠀⠀ In the case that you still have losses “remaining” after writing them off vs your gains, up to $3k of those remaining los...