Capital Gains Loss Harvesting Strategy Guide for Tax Optimization (2026)
Implement tax-loss harvesting strategy: loss realization timing, wash sale avoidance, carryover rules, and portfolio rebalancing for tax savings.
Summary
Tax-loss harvesting offsets gains with realized losses. This guide explains timing, wash sale rules, and annual limit utilization for optimal tax savings.
Key Steps
- 1Identify loss positions: unrealized losses exceeding short-term gains.
- 2Harvest losses before year-end: offset current year gains first.
- 3Avoid wash sale violations: 30-day waiting period before repurchase.
- 4Track loss carryover: unused losses carry forward indefinitely.
- 5Rebalance portfolio after harvesting: maintain target allocation.