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Question

What is the difference between tax-loss harvesting and tax-gain harvesting?

Answer

Tax-loss harvesting sells investments trading below their cost to lock in a loss that offsets gains and up to $3,000 of ordinary income. Tax-gain harvesting sells appreciated positions to lock in gains at favorable rates on assets held more than a year. Both must be completed by Dec. 31, and both require watching the 30-day wash-sale rule.

Related FAQs

What is tax-loss harvesting?

How does holding positions and avoiding capital gains compare to tax-loss harvesting?

Is tax-loss harvesting worth it for retirees?
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Last Updated Sept. 28, 2026
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