MARK KOHLERMain Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, Main Street Professionals, LLC · Owner at Main Street Professionals, LLC

Why Saving on Capital Losses Isn’t Great

13 Nov 2025 · 1 min

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Mark Kohler explains why capital loss harvesting has real limits: losses offset only capital gains, and excess losses get trapped in carryforward. Passive loss rules are complex and often misunderstood. Sell anything only after talking to a tax advisor to confirm it actually makes financial sense.

Chapters

To take advantage of any capital losses and sell anything that you might have a loss in right now and harvest those losses, whatever. That is a strategy. But those losses are going to be only deductible against other investment income. They could be stuck in a bucket, called a capital loss carry forward. Then you've got passive losses against passive income. It's just a very tricky area as well. So if you are going to sell any business interests, syndications, stocks, ETFs, crypto, make sure you're talking with your advisor to find out if it's actually going to help you at all and if it's a smart economic move to actually sell. So we put that number 20 at the end, where again, Forbes magazine is going to lead with that, which blows our mind.