Time For Some Tax Loss Harvesting?

Being able to refute the justification of holding onto an asset so it ‘gets back to even’ comes in the form of Tax Loss Harvesting.

If you have Loss Aversion or Sunk Cost Fallacy (we all do to some degree so don’t feel bad) then Tax Loss Harvesting can offset any ill feeling you may have over selling at a loss.

Alot of what we do with money can be psychological, hence I like the concept of Tax Loss Harvesting.

When we sell at a loss, that’s no fun.  But being able to offset that loss against any earlier recognized capital gains during the year?

Lessens the pain a bit.

It also can provide a psychological boost just knowing you cut yourself free from an investment that has been lagging and just doesn’t make sense, to you, to own anymore.

If you decide to do any Tax Loss Harvesting,  you have until the end of the this month (the end of the tax year).

If you change your mind later and want to, after all, own the security, well you can do that too.

Just make sure you wait 31 days to avoid the Wash Sale Period and thus don’t negate the benefit derived from Tax Loss Harvesting.

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