Tax Gain/loss Harvesting Definition

You are seeing definition of Tax Gain/loss Harvesting in Tax Terms Dictionary

Maybe this is not completely definition of Tax Gain/loss Harvesting but this is the best definition of Tax Gain/loss Harvesting at this time that we found. In future, this definition of Tax Gain/loss Harvesting can be modified, please visit our Tax Terms Dictionary more frequently to get latest information.

Home » Tax Terms Dictionary » Tax Terms Dictionary » Tax Gain/loss Harvesting

Definition Of Tax Gain/loss Harvesting:

Selling securities at a loss to offseta capital gains tax liability.
Tax gain/loss harvestingis typically usedto limit the recognition of short-termcapital gains, which are normally taxed at higher federal income tax rates thanlong-term capital gains.Also known as "tax-loss selling".For many investors, tax gain/loss harvesting is the single most importanttool for reducing taxes now and in the future. If properly applied, it can save you taxes and help you diversify your portfolio in ways you may not have considered.Although it can't restore your losses, it can certainly soften the blow.For example, a loss in the value ofSecurity A could be sold to offset the increase in value ofSecurity B, thuseliminating the capital gains tax liability ofSecurity B.

Other Definition Of Tax Terms:

For your more easier in looking up our financial terms dictionary, we classified definitions of financial terms in several types. Please select one type below:
Debit | Insurance | Debt | Sale | Small Business | Money | All Types

Thank you for visiting Tax Dictionary website. We are conituning to upadate more Tax terms to Tax Dictionary. Please visit this website usually to get new definitions of Tax terms. We also provide some more dictionaries, you can find out as below:
Medical Dictionary | Law Dictionary | Legal Dictionary | Business Dictionary | Financial Dictionary | Computer Dictionary | Slang Dictionary