What is tax-loss harvesting?

Tax-loss harvesting is selling investments at a loss to offset capital gains taxes. Realized losses reduce your taxable income — either by offsetting gains or by deducting up to $3,000/year against ordinary income. Unused losses carry forward indefinitely.

How does the wash-sale rule work?

The IRS wash-sale rule prevents claiming a loss if you buy a “substantially identical” security within 30 days before or after the sale. You can replace it with a similar-but-not-identical fund to maintain exposure while harvesting the loss. Helm Pro detects wash-sale violations across your linked accounts automatically.

Who benefits most?

TLH is most valuable for investors in higher tax brackets with unrealized losses in taxable brokerage accounts. If you hold index funds, stocks, or ETFs in a taxable account with underwater positions, you likely have opportunities. Typical annual savings: $500–$3,000+.

How Helm automates this

Helm Pro connects to your brokerage via Plaid and continuously scans for tax-loss harvesting opportunities with wash-sale rule awareness. Instead of spreadsheets with 200+ tax lots, Helm surfaces harvestable losses, flags risks, and suggests replacements — for $14.99/mo.