Tax Loss Harvesting Question ?

[rkser]

I am new at tax loss harvesting,

Last year I sold FSKAX at Fidelity with around $7000 long term gain and also at Vanguard I sold the Muni Fund VWIUX with a $7000 long term loss.

Would I have to pay capital gains tax on the gain of $7000 ??

Thanks

 

[audreyh1]

No, they will cancel each other out on your tax return. Schedule D.

 

[ERD50]

No, they will cancel each other out on your tax return. Schedule D.

Unless there was a "wash sale" of VWIUX (unlikely).

-ERD50

 

[COcheesehead]

Capital losses and capital gains need to take into account all your taxable capital transactions. So you need to look at all of them, not just these two. Short term losses offset short term gains. Long term offset long term. Anything left over after that process can apply to either. If anything is still left over after that, $3000 can be deducted from current income. If you still have losses, they can be carried forward and the process starts again.