What is Tax loss harvesting?
You can sell stocks, bonds, mutual funds, or other investments that have lost value, to reduce taxes on realized capital gains from winning investments. It’s called tax-loss harvesting.
You can offset capital gains when you have a investment losses on stocks, bonds, mutual funds, or other investments that have lost value( both short-term and long-term on stock).
According to IRS
If your capital losses are more than your capital gains, you can deduct the difference as a loss on your tax return. This loss is limited to $3,000 per year, or $1,500 if you are married and file a separate return.
Here is tax-loss harvesting tool from fidelity (login required).
visit fidelity.com for more information