Stock Market Loss in 2020? Don't Worry -- Losses Can Reduce Your Taxes!
Bragging about stock market losses is never in style, except when you're filing your tax returns. If you've been a victim of the stock market's wild ride and sold stocks at a loss in 2020, don't despair -- there's a special rule in the tax code that allows you a unique opportunity to turn your stock loss pain into a tax savings gain.
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2020 was a year of unprecedented volatility in the financial markets -- you may have had stocks in your portfolio that performed extremely well while others were the underachievers you wish you never laid eyes on. Don't become bitter; focus on finding a better way to deal with losses by tapping into the power of tax loss harvesting -- a way to use losses to reduce or eliminate capital gains taxes in a taxable investment account.
Source Fool.com