Tax Loss Selling

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Tax loss selling is a strategy investors use to offset capital gains on their investments by selling decreased-value securities. The losses from these sales can be used to offset any capital gains realized during the year, thus reducing the overall tax liability for the investor. This strategy is typically used at the end of the calendar year, as investors look to take advantage of losses before the new tax year begins. It is important to note that some specific rules and regulations must be followed to use this strategy effectively.