Tax-Loss Harvesting

with PNC Investments

How It Works

Tax-loss harvesting – offsetting capital gains with capital losses – can lower your tax bill and better position your portfolio going forward.

Tax-loss harvesting can be helpful in reducing or even eliminating your tax bill in a taxable brokerage account. Tax-loss harvesting lets you manage your tax burden by selling securities like stocks, bonds, mutual funds, and ETFs at a loss to offset the taxes owed on capital gains elsewhere in your portfolio (or even your income).  Doing this creates more tax-efficient investing and can even be used to offset taxes owed on regular income.

When considering tax-loss harvesting you should understand the differences between short- and long-term losses and how they are taxed.

If you’ve held a security for at least a year and sell it for more then you paid, you’ll owe long-term capital gains tax on the profit. If you held the investment for less than a year, you’ll have short-term capital gains, which are taxed as regular income. You can use losses to offset either type of gain, but if you have both, consider offsetting short-term gains first because they are usually taxed at a higher rate.

Harvesting losses regularly and proactively can save you money over the long run, effectively boosting your returns.

Additional fees, commissions, or trading charges will apply to tax-loss harvesting. There is no assurance that the benefits of tax-loss harvesting will exceed applicable fees, commissions, or trading charges in any given year.

  • Can only be performed in non-qualified (taxable) accounts.
  • While only harvesting losses was discussed, gains can also be harvested.
  • When conducting these types of transactions, you should be aware of wash sale rules, which states that if you sell a security at a loss and buy the same or a ‘substantially identical’ security within 30 days before or after the sale, the loss is typically disallowed for current income tax purposes (PNCI has the ability to monitor for this within our managed account program).
  • There are rules about carrying a tax-loss to future tax years, make sure you understand these rules before you harvest any losses.

Working with PNC Investments

Neither PNC Investments nor your Financial Advisor provide tax advice. You should review your tax situation with your own independent tax professional to fully evaluate how you may benefit.



There’s No Time Like Right Now to Take Advantage of Your 401(k)

The power of compound interest can turn modest contributions into big savings for retirement

3 min read


Building Wealth at Any Stage

A discussion on setting yourself up for financial success during every stage of your life.

30:14 min video


Financial Advice for Women: Marketing Ploy or Valid Distinction?

You don't need separate solutions - just a distinctly attuned point of view.

4 min read

Get Started

Your journey toward achieving your goals and improving your financial well-being is at your fingertips.

Let's Start a Conversation

Share your information
and we'll get in touch.

Call Us

Mon - Fri: 8:30am - 5pm ET

Visit Us

Find a PNC location near you
and stop by to see us.

Learn more about how PNCI’s Tax-Managed Resources can help you achieve your long-term investment goals in a tax-efficient way!

How PNC Investments Does Business

Learn how PNC Investments does business, including our qualifications, business practices, fee schedules, and options for how you can work with us by reviewing our Client Relationship Summary, Overview of Products and Services and more. View Details