2025 Stock Portfolio Taxes: Losses, Sales, and Gifts

Before making year-end trades or gifts, review the gains and losses already realized and the shares you still hold. This article covers the tax considerations for 2025.

1. Use losses against gains

Identify investments you are ready to unload and review whether capital losses can offset gains. If losses exceed gains, limited ordinary-income offsets and carryforwards may apply.

2. Respect the wash-sale rule

If you sell at a loss and buy back substantially identical securities within 30 days, the loss may be disallowed and added to the new basis. If the deduction matters for 2025, timing matters.

3. Loss carryovers

If you have large capital loss carryovers, review whether realizing capital gains before year-end could use those losses in a controlled way.

4. Review gifts and charitable donations

Gifting appreciated stock to family members or donating appreciated stock to charity can be useful when it fits your facts. Do not donate stock sitting at a loss; selling first may preserve the capital loss.