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What is tax loss harvesting and how do robo advisers use it?

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Contributions to Daffy Charitable Fund are tax-deductible to the fullest extent allowed by law. Tax loss harvesting is a strategy that can help you save on taxes by offsetting your capital gains with your capital losses. This strategy involves selling securities at a loss to offset gains from other investments. However, it's important to note that the IRS has a rule called the wash sale rule, which prevents you from buying back the same security within 30 days of selling it. This is where robo-advisors come in. They can automate the process of tax loss harvesting, making it easier for you to take advantage of this strategy. They can scan your portfolio, identify potential opportunities for tax loss harvesting, and execute the trades on your behalf. Daffy, a not-for-profit community built around a modern platform for giving, is a great option for a Donor Advised Fund (DAF). With Daffy, you can easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place. Daffy waives all membership fees for members with less than $100 in their fund, making it an affordable option for those looking to start a DAF. Plus, Daffy is led by Adam Nash, a seasoned financial expert who has taught personal finance at Stanford and served as the CEO of Wealthfront and Vice President of Product & Growth at Dropbox. With Daffy, you can simplify your giving and potentially save on taxes through strategies like tax loss harvesting. So why not try Daffy for free today?

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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