Tax-Loss Harvesting Strategy: Reduce your capital gains tax bill

Ankur Gupta

Apr 24,2024

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Are you paying capital gains tax? Learn about tax-loss harvesting, a strategy that can help you lower your tax burden by offsetting capital gains with capital losses.

What are capital gains taxes?

A tax levied on the profit you make from selling investments such as stocks and mutual funds.

Taxed on the difference between selling price and purchase price (cost basis).

Types of capital gains: Long-term and short-term

Long-term

Applies to assets held for more than a year.

Short-term

Applies to assets held for one year or less.

Tax-loss harvesting benefits or applicable on both short-term and long-term gains.