Tax-loss harvesting is a strategy used by investors to minimize their capital gains tax liability. The technique involves selling securities at a loss and using the losses to offset any capital gains realized. While tax-loss harvesting can be a complex topic, it’s important to understand the basics in order to make the most of your investment portfolio. In this blog post, we’ll explain what tax-loss harvesting is, how it works, and when you should consider using it.
Understanding Tax-Loss Harvesting
When it comes to taxes, there are a lot of strategies that investors can use to minimize their liability. One of these strategies is called tax-loss harvesting. Tax-loss harvesting is the process of selling an investment at a loss in order to offset capital gains elsewhere in your portfolio. This strategy can be used to lower your overall tax bill by offsetting capital gains with losses. There are some important...