The sale of a security that has experienced a loss in value is:
A)Net unrealized appreciation.
B)Required minimum distribution.
C)Section 72(t).
D)Tax loss harvesting.

Question

Quizplus · Accepted Answer

The sale of a security that has experienced a loss in value is known as tax loss harvesting. This strategy involves selling a security at a loss in order to offset capital gains and potentially reduce overall taxes owed.

The Sale of a Security That Has Experienced a Loss