Tax Terms
Tax-Loss Harvesting
Definition
What is Tax-Loss Harvesting?
Selling an investment at a loss to offset taxable gains, subject to applicable rules.
Example in practice
How This Looks in Practice
The investor realises a loss and reinvests within legal restrictions.
Keep learning
Related Terms
Tax Terms
Withholding Tax
Tax deducted at source from specified income payments before the recipient receives the balance.
Tax TermsCapital Gains Tax
Tax that may apply to gains from disposing of qualifying assets.
Tax TermsTax Authority
A public authority responsible for administering and collecting taxes.
Risk TermsMarket Risk
The possibility of loss because broad market prices or rates move against an investment.