Tax-loss Harvesting (or tax-loss selling) is a way to help eliminate gains from stocks you may have sold during the tax year. This benefit is for taxable accounts; generally it does not apply to IRAs or 401ks. If you have an investment that has lost money during the year, then you can sell it at a loss and use that loss to offset your gains. This investment is generally the most effective with short-term capital gains because they are taxed a higher rate than long-term gains (long-term means that you held it for more than a year).
