Lower Your Taxes with Strategic Loss Selling

Thanks again to Withum for their Platinum Sponsorship support of the OC Startup Council. To learn more about Withum's accounting and advisory services. please contact Allen Goh, Technology & Emerging Growth Services West Coast Team Leader - allen.goh@withum.com: 

Harvesting Tax Losses

Written by Daniel Krolikowski, Partner at Withum

Tax loss harvesting is an income tax planning strategy that involves selling investments at a loss with the intent to offset capital gain income. This strategy is beneficial to taxpayers who have large capital gain income and are seeking ways to lower their related income tax liability. It is important to note that any tax harvesting must be implemented prior to the end of the applicable tax year, which is December 31st for individual taxpayers.

Any capital losses harvested will be first used to offset any capital gain income. Short-term capital losses first offset short-term capital gain income, and then any remainder would offset long-term capital gain income. Long-term capital losses are the inverse; these losses first offset long-term capital gain income, and then any remainder offset short-term capital gain income.

In the case that total capital losses exceed total capital gain income for the current tax year, $3,000 can be used to offset a taxpayer’s ordinary income, such as ...

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Contact OCSC Platinum Sponsor Withum to learn more about their services. For Technology and Emerging Growth Services contact Allen Goh, Technology & Emerging Growth Services West Coast Team Leader - allen.goh@withum.com, Vince Phorn CPA – vphorn@withum.com, or Brenna Liana, Marketing - bliana@withum.com and learn more at https://www.withum.com/industries/technology-services/ 

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