Strategic Tax-Loss Harvesting for 2025

A detailed plan to offset $35,000 in short-term and $65,000 in long-term capital gains by realizing losses and reinvesting in replacement securities.

Available Unrealized Losses

The portfolio contains significant losses that can be harvested to maximize tax efficiency.

~$5,000

Short-Term Losses

Limited losses from positions held one year or less. These will be prioritized to offset high-tax-rate short-term gains.

~$110,000+

Long-Term Losses

Ample losses from positions held over a year, sufficient to cover all long-term gains and any remaining short-term gains.

Recommended Loss Harvesting Sales

Positions to sell to realize losses, focusing on those with low rebound potential.

Security (Ticker) Est. Loss Realized Term Rationale for Sale
Eros Media World (EMWPF) ~$23,364 Long-term Stock is virtually worthless; harvest large loss.
LL Flooring (LL) ~$17,444 Long-term Company has lost nearly all value; recovery unlikely.
NIO Inc (NIO) ~$17,139 Long-term Sharp decline with weak near-term prospects.
ChargePoint (CHPT) ~$10,552 Long-term Down ~97% from cost, unlikely to recover.
Canadian Solar (CSIQ) ~$7,012 Long-term Solar sector weakness with no short-term catalyst.
Lululemon (LULU) ~$2,600 Short-term Harvest short-term loss to directly offset short-term gains.
... (Other positions) ... ... See document for full list of smaller loss positions.

Replacement Investments

To maintain market exposure and avoid wash-sale violations.

Position Sold Suggested Replacement Rationale (Similar Exposure, No Wash Sale)
NIO Inc (NIO) iShares EV/Tech ETF (IDRV) Maintains diversified exposure to the electric vehicle industry.
Canadian Solar (CSIQ) Solar Industry ETF (TAN) Provides a diversified play on the global solar energy sector.
Lululemon (LULU) Consumer Discretionary ETF (XLY) Maintains exposure to consumer spending trends, including apparel.
APA Corp (APA) Energy ETF (XLE) Mirrors the broad energy market’s moves without being the same stock.
BioNTech (BNTX) Biotech ETF (XBI) Offers diversified exposure to biotechnology companies, diluting single-company risk.

Estimated Tax Impact

This strategy is designed to eliminate capital gains taxes for 2025.

Short-Term Gains Offset

Offsetting $35,000 of gains at a high ordinary income rate (~35%) could save ~$12,000+ in federal taxes.

Long-Term Gains Offset

Eliminating $65,000 of gains at a lower capital gains rate (~15%) saves around $9,750 in taxes.

Additional Benefits

Up to $3,000 of any net excess loss can be deducted against ordinary income, with the rest carried forward to future years.

Total Estimated Tax Savings: ~$22,000+

By eliminating $100,000 of taxable gains, you retain significant capital rather than paying it to the IRS.

Strategy Summary & Prioritization

1. Harvest the Largest Losses First: Target positions with substantial losses and low rebound potential to maximize tax benefit and clean up underperformers.

2. Offset ST Gains with ST Losses: Prioritize using short-term losses to offset short-term gains, as they are taxed at higher rates, yielding the greatest tax savings per dollar.

3. Use LT Losses for LT Gains & Remainder: Utilize the ample long-term losses to zero out long-term gains and then cover any remaining short-term gains.

4. Maintain Market Exposure (No Wash Sale): Immediately reinvest proceeds into comparable ETFs or different stocks in the same sector to stay invested without violating wash-sale rules.

5. Consider Investment Outlook: Focus on selling positions with low conviction. For any stocks you believe in, the 30-day replacement period allows for a potential re-entry after the wash-sale window has passed.