Glossary · Tax
Tax-loss harvesting is selling a position at a loss to realise that loss for tax purposes, usually while maintaining comparable market exposure.
The value is real but frequently overstated, because a harvested loss lowers basis and defers rather than eliminates the liability. It is worth most to clients with offsetting gains and a long horizon.
Done systematically it requires lot-level visibility, wash-sale awareness across every account in the household, and a replacement security that maintains exposure without being substantially identical.