Sorry for the specific post, posted on Robinhood sub and was deleted
Apologies for any mistakes.
I wanted to look into tax loss harvesting since I have already sold some winners this year, realized profit of about 25k. The premise of tax loss harvesting is to sell off my losers, and only pay tax on the net profit, correct?
I was looking into how to do this through Robinhood and although I kept seeing mention of Robinhood automating tax loss harvesting for Robinhood Strategies managed accounts, it was unclear how this applies to my brokerage accounts that I manage personally.
Essentially my question is whether Robinhood or other brokerages will track when I sell at a loss automatically and whether the 1099 I get will report only my net profit as income- or whether I need to actively track my losses, and enter those details manually.
Not really looking for advice, just trying to figure out how these apps work because I haven’t found clear answers.
Thank you!
Edit: would this also apply to losses on options that are out of the money?