The tactic, known as "tax-loss harvesting," involves selling losing brokerage account assets to claim a loss.
"Tax-loss harvesting is a tried and true strategy to lower investors' tax bills," said certified financial planner David Flores Wilson, managing partner at Sincerus Advisory in New York.
"Investors can benefit substantially over time" by tax-loss harvesting consistently throughout the year, Wilson said.
What to know about the wash sale ruleTax-loss harvesting can be simple when you're eager to offload a losing asset.
How exchange-traded funds can helpWhile the wash sale rule is a challenge, exchange-traded funds, or ETFs, can help investors avoid trouble with the IRS, experts say.
Persons:
David Flores Wilson, Wilson, George Gagliardi, Gagliardi
Locations:
New York, Lexington , Massachusetts