# @thejoserafaelhernandez on Instagram

- **Type:** Video
- **Original URL:** https://www.instagram.com/p/C_8PouZgW7l
- **Gondola URL:** https://gondola.cc/posts/59827396-thejoserafaelhernandez-instagram
- **Thumbnail:** https://img.gondola.cc/tr:w-,h-,fo-auto/postThumbnails/f8db98dcad.jpg
- **Posted:** 2024-09-15T14:40:28.000+00:00
- **Account Owner:** Jose Hernandez (@thejoserafaelhernandez) — https://gondola.cc/thejoserafaelhernandez

## Caption

One of the smartest things you can do as an investor…👇🏼
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Is to learn how to reduce the amount of $ you lose out on to taxes
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Tax loss harvesting is one of the most common ways to reduce the tax impact your investments can have on your wealth 
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In a nutshell, it involves strategically selling investments at a loss to use said losses as a “write off” against other gains in your portfolio 
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It’s important to know that tax loss harvesting can only be done in taxable accounts (not tax advantaged accounts like IRAs, etc)
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And you also want to make sure you avoid the wash sale rule when doing any tax loss harvesting so you don’t lose the ability to write off certain losses in your portfolio 
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While the main benefit of tax loss harvesting is the ability to report a lower amount of capital gains in your portfolio for the tax year, you may be able to use some of your losses against your gross income 
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That amount is currently capped at $3k annually and only applies if you have a “net capital loss” for the tax year (AKA: you locked in more losses than gains and still have losses “left over”)
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If you still have losses remaining after deducting the $3k from your gross income, remaining losses “rollover” to the next tax year and the process repeats until your losses are “used up”
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Tax loss harvesting plays an important role in an investment strategy and becomes increasingly important as your income and net worth continue to grow over time
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If you found this video helpful, share it with a friend and follow for more 🤝
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#investing #stockmarket #rothira #investingforbeginners #longterminvesting #dividends

## Stats

- **Views:** 777
- **Likes:** 38
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- **Comments:** 1

## Tags

investingforbeginners, dividends, stockmarket, longterminvesting, investing, rothira

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