Tax-Loss Selling Strategy Explained

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tax losses

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Here are the things you’ll want to watch out for when harvesting tax losses

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Tax-loss selling is a year-end ritual and can vary depending on your long-term capital gains or losses.

The purpose behind harvesting losses is to reduce taxes, which improves the after-tax return of an investor.

There are caveats to this strategy that can diminish its effectiveness for your tax bill.

More From GOBankingRates Mark Cuban : Trump 's Tariffs Will Affect This Class of People the Most5 Cities You Need To Consider If You're Retiring in 2025How To Get the Most Value From Your Costco Membership in 202510 Cars That Outlast the Average Vehicle This article originally appeared on GOBankingRates.com : Tax Day Countdown: 6 Common Mistakes To Avoid When Harvesting Year-End Tax Losses.

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