Given recent market volatility, you may have losses in your taxable accounts. You can lock in those losses for tax purposes, while still being invested for the long-term by buying something similar, but not identical. You can use these tax losses to offset capital gains when you file your tax returns. This is a concept known as tax-loss harvesting. For example, if you sold one investment and realized a gain of $5,000 and then sold another at a loss of $4,000, you reduce your taxable gain to $1,000. If your loss is larger than the gain, you can deduct up to $3,000 of the net loss against ordinary income.