taxiowa
Level 9
Level 9

I am not sure you would break even doing it DKH way.  You save at ordinary income tax rate with $3,000 capital loss per year.  Then you turn around and pay income tax at the capital gain rate when you add the $3,000 or entire amount back as taxable capital gain.  IMO doesn't seem fair to replace ordinary loss with capital gain if you are correcting something.