In this video, I explain the concept of tax loss harvesting, a popular technique used to reduce income taxes and capital gains taxes. I simplify the process and provide illustrative examples to help you understand how it works. Tax loss harvesting involves intentionally selling investments at a loss to offset taxable gains in other investments, ultimately reducing your taxable income. I also discuss the importance of being cautious when buying similar securities and highlight the potential benefits of this strategy in terms of tax planning.