Tax Loss Harvesting

Tax loss harvesting is selling an asset that has fallen in value so the loss is realised and can be set against gains in the same reporting period. It is a general investing concept rather than a crypto-specific one, and it appears in crypto discussion because assets move sharply and portfolios often hold many positions at once. Whether it is available, how losses may be offset, whether they carry forward to later years, and whether buying the same asset back shortly afterwards disqualifies the loss are all matters of national tax law, and the rules differ substantially between jurisdictions. Several countries apply a rule against repurchasing a substantially identical asset within a set window, and whether it covers crypto has been treated differently in different places. This is a term to recognise, not a strategy to apply from a definition — the applicable rules are the ones where you file, and a qualified adviser is the right source for them.