Tax-Loss Harvesting for Traders — Practical Guide
Tax-loss harvesting realizes losses to offset capital gains, reducing total tax bill. Sell loss positions before year-end; buy substantially-similar (but not identical) replacement. Watch wash sale rule. Most beneficial for high-bracket investors in taxable accounts. Robo-advisors automate this; manual harvesting requires year-end discipline.
Tax-loss harvesting realizes losses to offset capital gains, reducing total tax bill. Sell loss positions before year-end; buy substantially-similar (but not identical) replacement. Watch wash sale rule. Most beneficial for high-bracket investors in taxable accounts. Robo-advisors automate this; manual harvesting requires year-end discipline.
When to harvest losses
This section covers when to harvest losses. For the practical framework, see our Trading Taxes hub and our blog for related analyses. Read on for context-specific guidance.
Wash sale rule interaction
This section covers wash sale rule interaction. For the practical framework, see our Trading Taxes hub and our blog for related analyses. Read on for context-specific guidance.
Substantially similar replacements
This section covers substantially similar replacements. For the practical framework, see our Trading Taxes hub and our blog for related analyses. Read on for context-specific guidance.
Year-end harvesting routine
This section covers year-end harvesting routine. For the practical framework, see our Trading Taxes hub and our blog for related analyses. Read on for context-specific guidance.