Farmers aren’t the only people who can benefit from a strong harvest at the end of every year. Investors, whether seasoned or new to the game, can take advantage of tax-loss harvesting as part of their end-of-year tax strategy for their taxable investment portfolio.
Tax-loss harvesting is a simple way to lower current year taxable income by offsetting high capital gains through selling poor performing investments at a loss. Proceeds can be swapped into a comparable investment, invested in more attractive opportunities, or used for current cashflow needs.
Just because a stock is sold to harvest tax losses doesn’t mean an…