Personal Investments • Tax-loss harvesting for future years: Worth it?

I already have some losses (~$9K) in my taxable account that are over $3K, from stock A, which I held there earlier. I also currently hold stock B position, which is currently in the loss (-$4.4K). While I didn't have any earned income this year, I do have a tax obligation from my recent ~$90K Roth conversion.

The question is whether it is worth to sell the stock B position and add a bit more to my tax-offset bucket, which, at $3K yearly maximum, would take many years to empty (five, to be exact). In addition to that, there are several other disadvantages, including inability to repurchase stock B soon enough (it is very volatile and can easily start growing rapidly in January, as it has done before) and lose on potential upside. In other words, while tax-loss harvesting can reduce my tax burden in the short term, it can also "limit my options" going forward due to affecting my portfolio composition, future growth potential, and the ability to realize future gains from the asset I sold. I'm trying to figure out whether the "limit my options" part is more valuable than the potential to slightly increase my tax-offset bucket. Please advise. Thank you in advance and Happy New Year!

Statistics: Posted by fingoals — Fri Dec 27, 2024 12:17 pm — Replies 3 — Views 64

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