Hi, weird scenario that I can't seem to find the answer to.
Let's say that I made $40,000 a year and had a $5,000 net loss of stocks. Which I believe only the first $3,000 can be deducted from the ordinary income, equally $360 after applying the 12% margin rate. Then a month after selling the stocks I decide to repurchase them and hold them for over a year making them subject to the long-term capital gains tax rate. If the long term capital gains tax rate is 0% if you make less than $41,675, then would I technically only be able to win from tax loss harvesting stocks since I would never pay taxes on the the repurchased stocks, since I don't have to pay a long-term capital gain tax rate?
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