A useful year-end move to counteract capital gains.
Even though 2014 may end up being a subpar year for stocks, you may realize short-term capital gains. What will you do about them? You could do what many savvy investors do – you could “cash in your losses” and practice tax loss harvesting.
Selling losers to offset winners. Tax loss harvesting means taking capital losses (you sell securities worth less than what you first paid for them) to offset the short-term capital gains you have amassed.