I realized that I am way too invested in tech and would like to rebalance my portfolio(planning on slowly DCAing into VTI/VOO/VTSAX. I am 35 YO and still have a minimum of 15 years left before retirement.
Current holdings:
SPY: 10 shares. Down 1.1% or $57
QQQ: 20 shares. Down 10.5% or $991
NVDA: 205 shares. Down 25.2% or $6,402
MSFT: 82 shares. Down 12.27% or $4,120
GOOG: 162 shares. Down 21.3% or $6,445
AAPL: 61 shares. Down 16.14% or $2,191
AMZN: 30 shares. Down 19.51% or $1,237
Total: down -$21,447.32
I have some money in HYSA that's collecting 4% and plan on keeping it there(possible house down payment, etc). The yearly return is probably around $15k
I am not sure if I understand the TLH rules correctly. For example:
If I sell my stocks for a loss(for example $21k loss) and I end up collecting 15k in interest from HYSA for year of 2025. Would my capital gains for that year be negative $6k? And I could use this to offset my taxable income for 2025 by $3,000 and then another $3k for 2026? Is this worth doing given my situation? Or is it better to hold?
Is this worth doing? Does the amount of lower tax I am paying due to lower taxable income worth more then the capital losses I am realizing?
Thank you