As the year draws to a close, many of us are looking for ways to save on taxes. One strategy that often comes up is tax loss harvesting. But what exactly is it? Adam Nash, CEO and co-founder of Daffy, a not-for-profit community built around a modern platform for giving, explains this concept in simple terms. Tax loss harvesting is the process of selling securities at a loss to offset capital gains tax liability. This strategy can help reduce your taxable income and save you money. However, it's important to be aware of the wash sale rule, which prohibits you from buying the same or a substantially similar security within 30 days of the sale. While this might seem complicated, it's actually quite straightforward with index funds. For instance, you could sell the Vanguard Emerging Markets Fund and buy the Charles Schwab Emerging Markets Fund. These are different securities from different vendors with different indices, so they're not considered the same by IRS standards. Now, you might be wondering how this relates to Daffy. As a Donor Advised Fund (DAF), Daffy provides a platform where you can easily donate to almost every US public charity, track tax-deductible contributions, and access donation receipts all in one place. This can be a great way to further reduce your taxable income while supporting causes you care about. With Daffy, you can start giving for free if you have less than $100 in your fund. Plus, you can download the Daffy app to manage your donations on the go. So why not simplify your giving and save on taxes with Daffy, the Donor Advised Fund for You™? Please note that the information contained in this blog post is for educational purposes only and should not be considered tax advice. Always consult with a tax professional to assess your specific tax situation. To learn more about Daffy and how it can help you with your charitable giving and tax planning, visit our website or contact our support team.