Tax Loss Harvesting: Reduce Your Investment Tax Bill
Tax loss harvesting offsets capital gains with losses, potentially saving thousands in taxes. Here is how to do it correctly.
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Tax loss harvesting involves selling investments at a loss to offset capital gains. Losses first offset same-type gains, then up to $3,000 can offset ordinary income. Beware the wash-sale rule, which disallows repurchasing the same or substantially identical security within 30 days.
Disclaimer: This article is for informational purposes only and does not constitute financial, tax, or legal advice. Tax laws change frequently — consult a qualified tax professional or official government resources for advice specific to your situation.
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