If something you own is worth less than you paid, there is a simple, legal move that turns that dip into money off your tax bill. No spreadsheets. We do the math.
See how it works through one real example.
If you can say yes to these, this page is for you.
If your investing is all inside a 401(k) or IRA, you can skip this one. It does not apply there.
A loss only helps you once you actually sell. So you sell, and right away buy something similar to stay invested.
Sell the investment that is down. That turns a paper loss into a real one the IRS counts.
We pick a similar (not identical) fund for you, so your money stays in the market and you never have to guess.
That loss lowers your taxable income, so your tax bill goes down. We track it for you.
The accountant word for this is "tax-loss harvesting." You do not need to remember that. We handle the hard part.
Maria had a fund that was down $6,000. She sold it and, the same day, bought a similar fund so her money stayed invested. That $6,000 loss lowered her taxable income. Because she did not sell anything else at a profit this year, about $3,000 of it cut her income now, saving her around $660, and the rest was banked to lower her tax bills in future years.
Example for illustration. Your numbers depend on your own situation.
Three quick taps. Watch your savings change.
This is a rough guess. Connect your account to see your real number, down to the dollar.
A simple federal estimate to show the idea, not a tax filing. Your state may add more savings. Real numbers depend on your full situation, and yearly limits apply to how much loss reduces regular income. We confirm every figure before you act.
Connect your investment account and we read which holdings are down, so we can show you the exact ones to sell and the dollars you save. We cannot see this without it.
Works with Fidelity, Schwab, Robinhood, Vanguard, E*TRADE, and more.
Free to check. Nothing is ever sold until you say so.
The honest version. A few things can trip people up.
No. You sell the one that is down and buy a similar one at the same moment, so your money stays invested. You are swapping, not cashing out.
Yes. It is a normal, well known part of how investment taxes work. There is just one timing rule to follow, and we handle it for you.
To find which of your holdings are down, we need to read them. Access is read-only, so we can see your investments but can never move money or place a trade. You approve every action.
No. It only works in a regular taxable brokerage account. Retirement accounts are not taxed year to year, so there is nothing to harvest.
A loss first wipes out gains you took elsewhere, with no limit. Beyond that, only a set amount can reduce your regular income each year, and the rest carries over to future years. We do the full math on your real numbers.
Connect an account or upload last year's return. No card to get your number.
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