For instance, you might own VTSAX in both an IRA and in a taxable account. Should you need to sell to rebalance that year, sell in the taxable account to capture the loss. You can deduct it against any other gain you happen to have, including any capital gain distributions. You can also deduct up to $3,000 against your earned income. Any loss left over you can carry forward to use in future years. (But be careful not to buy more VTSAX in your IRA, or any other of your investment accounts, within 30 days of selling. If you do, the IRS will consider this a “wash sale” and your tax loss would be
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