managing investment loss

Team, I have filed my taxes for FY2022 but have a unrealized loss in the cd's and securities for a Total of $ 40k.Investment firm has asked me to get advise from tax advisors before they could remanage by selling the investments at loss and reinvesting .want to know what would be the strategy to minimize the losses and also want to know if you provide like a CPA advise in order to manage these and comes as a package to file taxes for 2023?

314

Level 15

Apr 6, 2023 6:11:02 PM

I would think this is what you pay your investment advisors to do. if they sell at a loss then they have to wait until 31 days after trade date to repurchase substantially identical securities to avoid the wash sale rules. one way to minimize losses is not to sell in the hope the market will recover but no assurance that this would happen any time soon. when to take losses and how much is up to the taxpayers and their advisors. the net capital loss deduction is limited to $3000 per year. "strategy to minimize the losses?" maybe this has a simple answer. have your advisors have you buy securities that will appreciate in value. Turbotax does not offer investment advice.

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managing investment loss