Yes, you can offset some stock losses through a tax strategy called tax loss harvesting. With tax loss harvesting, you’ll sell stocks at a loss, and you can then use up to $1,500 ($3,000 for married filing jointly) a year in losses to reduce your investment gains and other taxable income. Plus, you can carry over losses from the previous year if they exceed the deduction limit.

Keep in mind that tax loss harvesting only applies to stocks you’ve sold. If you hold onto a stock that has depreciated, you cannot use that depreciation to offset your losses or reduce your taxable income.

There are many rules surrounding tax loss harvesting that you need to be aware of, and it can get complicated, fast. That’s why it’s important to talk taxes with a pro. Book now to ensure you have a solid tax plan to maximize your refund or minimize your tax.

Sharon Brucker, CPA Senior Tax Research Analyst Published on: August 08, 2025
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*This content is for general informational purposes only. It is not intended to be comprehensive and should not be construed as professional tax or financial advice for any specific individual tax situation. Taxpayers should always consult a qualified professional for individual guidance. This information constitutes a solicitation under the Treasury Department's Circular 230. Most offices are independently owned and operated.