Tax Gain/Loss Harvesting Mean?

MS SAMEER (CMA*CA*CMDM*ast FUND MANAGER*LEGAL ADVISOR)   (14938 Points)

10 July 2010  

Tax Gain/Loss Harvesting Mean?
Selling securities at a loss to offset a capital gains tax liability. Tax gain/loss harvesting is typically used to limit the recognition of short-term capital gains, which are normally taxed at higher federal income tax rates than long-term capital gains. 

Also known as "tax-loss selling".