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The Daily Capital
INVESTING 201 · Lesson 41

Tax-loss harvesting (and the wash-sale rule)

Daily Desk · Editorial5 min read
A losing investment isn't all bad news — sold the right way, it can lower your tax bill. Sold the wrong way, the IRS ignores the loss entirely.

Nobody likes a losing investment. But there's a silver lining the pros use every year: a loss, realized strategically, can cut your taxes. The catch is a rule that trips up beginners — the wash sale.

Educational, not financial advice.