The process of a trader selling stock at a loss in order to counteract gains in another investment. The trader tries to balance out the two, so that he/she does not have an elevated tax liability at the end of the year. The trader does run the risk of selling an investment at a loss that would have become very profitable in the near future. Due to tax loss harvesting, the stock market may become volatile as the end of the year approaches.
Related information about tax loss harvesting:
- Tax Loss Harvesting - Bogleheads
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- Tax Gain/Loss Harvesting Definition | Investopedia
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- A Magical Tax-Loss Harvesting Machine? - Forbes
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- Time for Tax-Loss Harvesting - The Smarter Investor (usnews.com)
Nov 8, 2011 ... Here's how tax-loss harvesting works: When you sell mutual fund shares from a taxable account for less than you paid, you create a capital loss ...
- COLUMN-Tax-loss harvesting and the fiscal cliff don't mix | Reuters
Oct 22, 2012 ... By Amy FeldmanNEW YORK, Oct 22 (Reuters) - With taxes in flux because ofthe looming expiration at year-end of the George W. Bush-era ...
- Tax Report: Turning Losses Into Gains - WSJ.com
Aug 20, 2011 ... Advisers call such sales "tax-loss harvesting" and recommend them to investors with taxable accounts. (It doesn't apply in tax-favored ...
- Tax-Loss Harvesting with ETFs | ETF Trends
Sep 12, 2012 ... Tax-loss harvesting is the most efficient way for investors to offset capital gains . An ETF gives investors the control to manage their taxable ...
- Basics of ETF Tax Loss Harvesting » My Money Blog
Oct 22, 2012 ... Tax-loss harvesting (TLH) is a technique used to minimize taxes on your taxable investments – without altering them significantly – by ...