Personal Taxes – Capital Gains or Losses

Harvest capital gains or losses. Traditionally, this i8s the time of year when investors realize capital losses from sales of stocks and other securities. The losses can offset capital gains realized earlier in the year plus up to #3,000 of high-taxed ordinary income. Any excess loss is carried over to the following year. On the other hand, depending on your situation, you might harvest capital gains that will be absorbed by previous losses. The maximum tax rat4e on long-term gains of securities owned longer than a year is only 15% or 20% for investors in the top ordinary income bracket of 39.6%