Bitcoin is still early

[Lordosis]

Actually that is exactly what I would have done (sold VTSAX). I didn’t own that MF at the time but I sold most of my taxable holdings.

you exchange into a TLH partner for the rebound. That way you capture the losses and still stay in the market when it rises. That’s how tax loss harvesting works.

What is the TLH partner for Bitcoin?

[NapoleanDynamite]

Actually that is exactly what I would have done (sold VTSAX). I didn’t own that MF at the time but I sold most of my taxable holdings.

you exchange into a TLH partner for the rebound. That way you capture the losses and still stay in the market when it rises. That’s how tax loss harvesting works.

My apologies...I do understand TLH.

I was making some assumptions. 3K is the max one can TLH per year. Although this is great, I have already TLH'd enough for the next 15 years of my life. I assumed most on this forum have already done the same. TLH is great, but is only good to the 3K point. After that it is pointless and just extra work. So I haven't TLH'd anything in the past few years. As pointed out above, you could theoretically move to GBTC (although this is definitely not a true 1 for 1 switch), but that is not a route I would take.

[G]

My apologies...I do understand TLH.

I was making some assumptions. 3K is the max one can TLH per year. Although this is great, I have already TLH'd enough for the next 15 years of my life. I assumed most on this forum have already done the same. TLH is great, but is only good to the 3K point. After that it is pointless and just extra work. So I haven't TLH'd anything in the past few years. As pointed out above, you could theoretically move to GBTC (although this is definitely not a true 1 for 1 switch), but that is not a route I would take.

Are you sure you understand TLH? There is no "max" that one can TLH. The most you can claim in one year is a 3k deduction, but the remainder is still carried forward to offset future gains.

I am not in the crowd that tries to wring out pennies each month, but when the market drops as it did this spring, it was certainly not pointless extra work.

[NapoleanDynamite]

Are you sure you understand TLH? There is no "max" that one can TLH. The most you can claim in one year is a 3k deduction, but the remainder is still carried forward to offset future gains.

I am not in the crowd that tries to wring out pennies each month, but when the market drops as it did this spring, it was certainly not pointless extra work.

"I have already TLH'd enough for the next 15 years." Yes, I understand it.

It is maxed at 3K and excess is carried over indefinitely. Right now I still have about 40-50K in TLH-ing saved up. I would have to ask my accountant for the exact number at this point, but it is not something I put much time thinking about anymore. When it gets closer to 10K in 10 years I will start thinking about it again.

[G]

"I have already TLH'd enough for the next 15 years." Yes, I understand it.

It is maxed at 3K and excess is carried over indefinitely. Right now I still have about 40-50K in TLH-ing saved up. I would have to ask my accountant for the exact number at this point, but it is not something I put much time thinking about anymore. When it gets closer to 10K in 10 years I will start thinking about it again.

ND, you couldn't sum up your entire on-line persona better than that post right there. (And, no, you do not seem to understand tax loss harvesting.)

[Nysoz]

What is the TLH partner for Bitcoin?

Ethereum?

[CordMcNally]

What is the TLH partner for Bitcoin?

CordMcNallycoin...coming 2nd quarter 2021. As a special marketing ploy, I will be marketing it as being immune to COVID*. I expect demand to be high.

*not evaluated by the FDA or CDC

[Lordosis]

CordMcNallycoin...coming 2nd quarter 2021. As a special marketing ploy, I will be marketing it as being immune to COVID*. I expect demand to be high.

*not evaluated by the FDA or CDC

I prefer CoinMcNally

[CordMcNally]

I prefer CoinMcNally

Well son of a b...you're my new marketing director and chief experience officer.

[jacoavlu]

Ethereum?

no

[jacoavlu]

I prefer CoinMcNally

oh cmon its Cord-ers

ill see myself out

[CordMcNally]

oh cmon its Cord-ers

ill see myself out

You’re my new chief innovation officer and social chair.

[NapoleanDynamite]

ND, you couldn't sum up your entire on-line persona better than that post right there. (And, no, you do not seem to understand tax loss harvesting.)

Well shucks.

I just wrote a very nice narrative for u but it didn’t save from my phone. Let me try again at 1 am on a Friday night.

Here is a link to the IRS tax loss harvesting site:

https://www.irs.gov/taxtopics/tc409

and here is another link to the WCI post about TLH:

https://www.whitecoatinvestor.com/tax-loss-harvesting/

Now, let’s talk about my situation. I was in between patients earlier today, but I actually have a minute to write a more thorough post. So here is my situation. Early in my career I made a bad decision and bought in to an oil project. Long story short, I lost about 45k. This is currently in a lawsuit(not filed by me). No matter what happens with the lawsuit, that is a 45k capital loss for my tax purposes (assuming I get no money from said lawsuit). This is approx. 15 years worth of loss. Did it hurt? Yes. Do I hate thinking about it? Yes.

At the same time, was I also TLH-ing other losses over the course of 5 years? Yes.

So after these capital losses how much did I have left? Approx 50k in losses. This was 2014. Am I proud of these ventures. No. Not particularly. But did I learn from them? Yes. Absolutely. Did they help me grow as a person and as an investor? Yes.

Now, how much do I have left to carry over? Enough to last for a very long while. This is also not factoring in that I now make 7 figures in income every year. This equates to >300k in taxes every year. I’m sorry but $1,200 is spit in the bucket.

So when I say I understand TLH, I’m pretty sure I do. Maybe I am wrong. I have been wrong many, many, many times. Please correct me if I am missing ok something or if something has changed. I appreciate the correction. We all can learn.

But, if you are just being a jerk, then please stop as you are preventing learning for others.

Have a great weekend!

[CordMcNally]

So after these capital losses how much did I have left? Approx 50k in losses.

Now, how much do I have left to carry over? Enough to last for a very long while.

Once you start realizing gains, $50k is nothing.

[billy]

Well shucks.

I just wrote a very nice narrative for u but it didn’t save from my phone. Let me try again at 1 am on a Friday night.

Here is a link to the IRS tax loss harvesting site:

https://www.irs.gov/taxtopics/tc409

and here is another link to the WCI post about TLH:

https://www.whitecoatinvestor.com/tax-loss-harvesting/

Now, let’s talk about my situation. I was in between patients earlier today, but I actually have a minute to write a more thorough post. So here is my situation. Early in my career I made a bad decision and bought in to an oil project. Long story short, I lost about 45k. This is currently in a lawsuit(not filed by me). No matter what happens with the lawsuit, that is a 45k capital loss for my tax purposes (assuming I get no money from said lawsuit). This is approx. 15 years worth of loss. Did it hurt? Yes. Do I hate thinking about it? Yes.

At the same time, was I also TLH-ing other losses over the course of 5 years? Yes.

So after these capital losses how much did I have left? Approx 50k in losses. This was 2014. Am I proud of these ventures. No. Not particularly. But did I learn from them? Yes. Absolutely. Did they help me grow as a person and as an investor? Yes.

Now, how much do I have left to carry over? Enough to last for a very long while. This is also not factoring in that I now make 7 figures in income every year. This equates to >300k in taxes every year. I’m sorry but $1,200 is spit in the bucket.

So when I say I understand TLH, I’m pretty sure I do. Maybe I am wrong. I have been wrong many, many, many times. Please correct me if I am missing ok something or if something has changed. I appreciate the correction. We all can learn.

But, if you are just being a jerk, then please stop as you are preventing learning for others.

Have a great weekend!

that 50 k in losses can offset 50k of gains in one year, that part is not limited to 3k. If the TLH is of short term losses, they can offset short and long term gains. The 3k limit is only for income after accounting for gains. So yes you can TLH a lot more. And yes when the market dipped in march, I TLH another 10k this year. And will continue to do so to offset my eventual gains when I start selling in retirement, while taking the 3k income offset in the mean time.