<h1>How to Legally Offset Capital Gains with Tax Loss Harvesting</h1>
Tyler?
Yep.
Did you just make $600,000 from the sale of your home?
Sure did.
Okay, so you owe us 20% of that, which is $120,000.
Oh, no. $500,000 of that is exempt under Section 121.
Okay, so you owe us 20% of the $100,000 gain.
Oh, I tax loss harvested that.
You did what?
Because the stock market is down, I sold all of my shares of Apple and locked in a loss of $100,000. I reinvested that money into an index fund that holds shares of Apple. Now, that $100,000 loss completely offsets the $100,000 gain from my home.
So we get nothing?
That’s right.