What Is the Purpose of "Tax-Loss Harvesting" in Investment Strategy? ⎊ Path

What Is the Purpose of “Tax-Loss Harvesting” in Investment Strategy?

Tax-loss harvesting is a strategy where an investor sells an asset that has decreased in value to realize a capital loss. This realized loss can then be used to offset capital gains realized from profitable sales, thereby reducing the investor's overall tax liability.

The goal is to maximize after-tax returns by strategically managing when losses are realized.

How Are Capital Losses Treated and Limited against Ordinary Income?

What Is the Tax Implication of a DAO’s Treasury Holding Different Crypto-Assets?

How Does MTM Relate to the Concept of Realized and Unrealized Gains/losses?

How Are Capital Losses Used to Offset Capital Gains?

What Is the Tax Implication of Selling the Lowest Cost Basis Crypto First?

What Is the Maximum Long-Term Capital Gains Tax Rate Currently?

What Is the Current Maximum Long-Term Capital Gains Tax Rate?

What Is the Difference between ‘Customer Liability’ and ‘Total Liability’ for a Custodian?