Tax-Loss Harvesting

Q: What is Tax-Loss Harvesting?

Tax-Loss Harvesting — Sell losers to offset gains. Tax-loss harvesting means selling positions at a loss and using those losses to offset capital gains on other sales.

Definition

What is Tax-Loss Harvesting?

Tax-loss harvesting means selling positions at a loss and using those losses to offset capital gains on other sales. In India, STCG losses offset STCG/LTCG; LTCG losses offset only LTCG. Losses can be carried forward up to 8 years. Watch for the wash sale rule in the US (30-day window).