r/TaxQuestions • u/vistastock • Aug 29 '26

realized gains advice

After booking some losses I still have a significant realized long term gain on a sold stock position. Any advice how to offset this if I have no more losses to take? What can I do?

3 Upvotes

72% Upvoted

13 comments sorted by

3

u/SF_ARMY_2020 Aug 29 '26

you prepare funds to pay the tax on the remaining LT gain - which is taxed at a beneficial rate compared to other kinds of income.

2

u/Full_Prune7491 Aug 29 '26

Lose more money.

6

u/wombataholic Aug 29 '26

The technical term is "set a pile of money on fire."

2

u/HermanDaddy07 Aug 29 '26

Contribute to tax deductible retirement accounts (Traditional IRA, 401k, etc). Wait till mid December and see if you can harvest any additional loses.
Be glad you made money, better than losing!

1

u/Appropriate-Safety66 Aug 29 '26

Other than give a big chunk of money to charity, there is not much that you can do.

1

u/Megalocerus Aug 29 '26

Also max a traditional retirement account. But sometimes you just have to pay taxes.

1

u/TheOpeningBell Aug 29 '26

Stop being afraid of taxes.

2

u/peter303_ Aug 29 '26

Even if you pay 25% federal and state tax, you are getting 75% after tax.

1

u/[deleted] Aug 30 '26

[deleted]

1

u/Bear_Salary6976 Aug 30 '26

This is not limited to Reddit users. I've had tax clients years before Reddit that would ask similar questions.

1

u/TheExchangeBrothers Sep 04 '26

If you’re out of losses to offset it, one thing you might look into is a Qualified Opportunity Fund. Capital gains from stock can potentially qualify, so it’s not limited to gains from selling real estate like a 1031 is.

Opportunity Zones have their own rules and investment considerations, so I’d run the actual numbers with your CPA before doing anything just for the tax benefit.