Concentrated Stock Comprehensive Guide eBook Offer | Page 12

Tax-loss harvesting is a process that can be done with any type of capital investments at any time of the year.


Systematically selling a security that has experienced a loss

Harvested” losses can offset capital gains and some income

The sold security is replaced by a similar one, maintaining similar exposure and risk characteristics of a portfolio strategy, like the S&P 500 index

Due to IRS “wash sale” rules, the sold security cannot be bought back for 30 days

Tax-loss harvesting Process and the Benefits


Investments that have declined in value are sold.

Realized losses offset gains on income tax returns.

Losses can be carried forward and used to offset future gains.

What is Tax-Loss Harvesting?

Active Tax-Loss Harvesting


Examples of similar securities