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You can if you sell at a loss. Problem is that if you make $10,000 profit, you pay tax on it all in one year. If you lose $10k, you can only write off about $3,000 per year so it will take you 4 tax years to write off that kind of loss. Been there, did that.

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Q: When mutual funds advance you get slapped with capital gain taxes but when they decline you cannot deduct any losses why?
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