How Tax-Loss Harvesting Works in a Volatile Market

In this episode, Lucas and Luna break down the mechanics of tax-loss harvesting — selling investments at a loss to offset capital gains and reduce your tax bill. Using a concrete example from the summer 2026 market pullback, they explain how a hypothetical investor with $50,000 in realized gains could use $30,000 in losses from a beaten-down tech ETF to zero out their tax liability. They cover the wash-sale rule trap (including the 30-day window and how it applies across accounts), the difference between short-term and long-term loss treatment, and why harvesting matters more in volatile years like 2026 when the S&P 500 has seen multiple 5% swings. Lucas shares data on how the average investor could save over $5,000 in taxes annually using this strategy. Luna asks practical questions about brokerage automation and whether it's worth doing for small portfolios. The episode stays focused on the specific mechanics and rules, not generic advice. #TaxLossHarvesting #CapitalGains #WashSaleRule #InvestmentTaxes #TaxStrategy #PortfolioManagement #S&P500 #Volatility #2026Taxes #TaxSavings #Finance #Business #FexingoBusiness #BusinessPodcast #TaxPlanning #WealthManagement #ETF #TaxEfficiency Keep every episode free: buymeacoffee.com/fexingo