Vol. 01 · Issue 04

The Smart Money — Weekly personal finance dispatches

Personal finance for people who want to be great with money — written by the friend who already is.

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Tax-Loss Harvesting

Also known as: TLH

What it is

Selling an investment at a loss to offset capital gains — or up to $3,000 of ordinary income — and immediately buying a substantially different but correlated asset.

What it really means

A small, reliable edge you can capture almost every December, and after any real market drawdown. The wash sale rule is the trap.

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