Tax Loss Harvesting (TLH)
What is tax-loss harvesting, and how does it work on Vested?
Tax-loss harvesting is a strategy used to reduce taxable capital gains of your portfolio: You deliberately sell assets that have incurred losses to offset current or future capital gains. Example: Assume a single investor earns an income of $580,000 ...
Are tax documents automatically updated considering tax-loss harvesting transactions?
Yes, once your tax-loss harvesting transactions have been executed, the tax documents available in our Tax Module are automatically updated.
Is bonus stripping eligible for tax-loss harvesting in India?
As per the Amendment to Section 94(8) of the Income Tax Act, capital gains/losses from bonus stripping transactions are not eligible for tax-loss harvesting.
Which gains can short-term and long-term losses offset?
Long-term capital loss cannot be offset against any income other than income from long-term capital gain. Short-term capital loss can be offset against long-term or short-term capital gain.
What do "Before Harvest" and "After Harvest" values signify?
Before Harvest The Before Harvest values are the user’s realized gains/losses as of the current date. The Tax-Loss Harvesting dashboard shows realized gains/losses split as short-term realized gains/losses and long-term realized gains/losses. Red ...
Does tax-loss harvesting take into account currency depreciation as well?
Vested’s tax-loss harvesting module helps you reduce the taxable capital gains of your portfolio in US dollars. Since all assets you own and sell are in US Dollars, there is no currency depreciation to consider.
Is there any maximum limit an individual can offset?
No, there is no limit to the amount of losses you can harvest.
Can Vested help me file my ITR and offset my losses?
No, Vested does not provide services to help file your ITR. However, we provide a detailed tax module catered specifically to Indian investors for filing their taxes and a tax-loss harvesting module that allows investors to easily offset their ...
Can I club my India & US PnL to take advantage of tax-loss harvesting?
Yes, your capital losses/gains account for all assets you own. Please consult a tax advisor on how to take advantage of tax-loss harvesting across all your assets.
Is tax-loss harvesting available to all users?
The tax-loss harvesting feature will be visible to all users. However, only our Premium subscribers currently have access to the feature. You will need to subscribe to Vested Premium to help reduce your tax liability with the tax-loss harvesting ...
What is the wash sale rule? Is it applicable to Indian investors?
The wash sale rule applies to investors who are domiciled in the US for tax purposes. Under the wash sale rule, investors cannot sell securities, lock in losses, and buy the same security within 30 days. For tax residents of India, no such rules ...