Tax-loss harvesting involves strategically selling securities at a loss to offset capital gains from profitable sales, thereby reducing overall tax liability. This practice is commonly used by investors to maintain portfolio balance and diversification while minimizing taxes. However, it's crucial to avoid triggering the IRS wash sale rule.
Note: SoFi currently employs the MinTax method to select tax lots for sale. At present, specific tax lot selection is not available via the website or mobile app.
SoFi Automated Investing accounts do not include tax-loss harvesting as part of their auto-rebalancing feature.