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What is the significance of index funds in tax loss harvesting?

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01(c)(3) and 509(a)(1) of the Internal Revenue Code. Contributions to Daffy Charitable Fund are tax-deductible to the extent allowed by law. Daffy Charitable Fund's EIN is 46-0942102. Tax loss harvesting is a strategy that can help you save on taxes by offsetting your capital gains with your capital losses. This strategy is particularly effective when you invest in index funds. As Adam Nash, CEO and co-founder of Daffy, explains, you can sell one index fund at a loss and buy another with similar performance characteristics, thereby avoiding the IRS's wash sale rule. Daffy, a not-for-profit community built around a modern platform for giving, is an excellent choice for a Donor Advised Fund (DAF). With Daffy, you can easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place. Daffy waives all membership fees for members with less than $100 in their fund, making it an affordable option for everyone. In addition to its user-friendly platform, Daffy also offers a wealth of educational resources. From understanding tax loss harvesting to learning about the best mortgage rates for first-time buyers, Daffy provides the information you need to make informed financial decisions. So, whether you're looking to save on taxes through tax loss harvesting or seeking a convenient and affordable platform for charitable giving, Daffy is a great option. Get started today for free and see the difference Daffy can make in your financial journey.

Please note that the information contained on this page is for educational purposes only and should not be considered tax advice. Any calculations are intended to be illustrative and do not reflect all of the potential complexities of individual tax returns. To assess your specific tax situation, please consult with a tax professional.

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