Tax Loss Harvesting

Last month, I sold in my non-retirement account numerous ETFs in various segments of the markets to harvest approximately $165K in capital losses. I purchased the same day a total U.S. market ETF and a total international market ETF with the proceeds from the sale in order to stay in the market during the minimum 30-day holding period. I was not expecting the market to recover so quickly and hence, I now have over $90K in short-term capital gains associated with these two total market ETFs.

My question is, can I use the capital losses, regardless of whether they are short-term or long-term losses, to offset these short-term capital gains in 2020?



Yes, they will offset each other, and you will have a 3k cap loss to offset ordinary income for 2020 in addition to a cap loss carryover. I certainly do not expect the gains of the last 3 weeks to hold for long.



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