![Understanding Tax-Loss Harvesting: A Guide for Investors](/images/e/a/3/d/4/ea3d4f7e22b844e58c51a627414847a4d1b268db-tax-loss-harvesting.jpg)
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Understanding Tax-Loss Harvesting: A Guide for Investors
Understanding Tax-Loss Harvesting:
Tax-loss harvesting is a sophisticated investment strategy that involves the selling of securities at a loss to offset a corresponding gain. When applied effectively, this technique can reduce the taxable income and enhance the tax-efficiency of an investment portfolio. The essence of tax-loss harvesting lies in its capacity to lower the investor's current year's…