Tax loss harvesting

Tax loss harvesting (TLH) is an investment strategy for "generating" capital losses to gain a tax advantage. It occurs when an investor sells a security that has depreciated in value only for the tax losses. The effectiveness of this approach is dependant of the tax rules in a particular jurisdiction. In the United States CBS News describes tax loss harvesting specifically as "selling an investment at a loss with the intention of ultimately repurchasing the same investment after the IRS's 30 day window on wash sales has expired." This allows investors to lower their tax amount with the use of investment losses.