Tax Loss Harvesting for a Dependent?

[MoneyRx]

Would there be any benefit to tax loss harvest for a dependent?

The situation is: Filing as a dependent on parents tax return (age <26), could take a tax loss right now of about $4,000 due to recent downturn, the dependent has income >$4,000 from a part time job.

Overall question is if sell and buy a "different" investment, how would the tax loss be applied if at all?

Thanks in advance for any input!

[seattlecyclone]

I believe the first $3,000 of losses would offset regular income. I haven't heard of a rule stating this applies differently for dependents. The remaining $1,000 of losses would carry over to the next year.

[MDM]

Would there be any benefit to tax loss harvest for a dependent?

The situation is: Filing as a dependent on parents tax return (age <26), could take a tax loss right now of about $4,000 due to recent downturn, the dependent has income >$4,000 from a part time job.

Is the earned income less than ~$12,000, and very little unearned income?  If no, so tax is due anyway.

See https://www.irs.gov/pub/irs-dft/i1040gi--dft.pdf (page 35) for details.