Investing Dictionary
Strategies

What is Tax-Loss Harvesting?

Selling losing investments to reduce your tax bill

Full Explanation

When you have losing investments, you can sell them to create a "loss" that offsets your gains on winning investments — reducing how much tax you owe.

Pro Tip

Be careful of the wash-sale rule: you can't immediately rebuy the same stock after selling for a loss.

Related Strategies Terms

Growth Investing

Buying companies growing fast even if expensive

Index Investing

Buying funds that track the whole market instead of picking stocks

Insider Trading (Legal)

Tracking what company executives are buying

Momentum Investing

Buying stocks that are already going up

View all Strategies terms →

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