Question

In 2023 Last-Minute Year-End Tax Strategies for Your Stock Portfolio, you state in Strategy 4, “Don’t die with Loss carryovers.”

I ask, “Why not?”

Let’s say I have $400,000 in capital loss carryovers, and a stock portfolio worth $2 million with a basis of $1 million.

I sell $800,000 worth of stock to generate a $400,000 gain, use my $400,000 carryover loss to avoid taxes, and spend $800,000 to buy back that stock the next day. (The wash sale rule does not apply ... Log in to view full article.