Maximize Your Returns: Turning Bond Losses into Profits

Selling long-term Treasurys in a taxable account before the end of the year can help investors harvest a tax loss to offset capital gains. By selling and repurchasing a different long-term Treasury ETF after the 30-day wash sale rule expires, investors can maintain exposure to long-term Treasurys while avoiding violating the rule. Care must be taken to choose a substitute ETF that is not "substantially identical" to the one sold. ETFs provide a convenient option for finding similar but not identical assets to harvest tax losses while maintaining portfolio exposure.