Tax-loss harvesting can be more than a year-end strategy for offsetting investment gains. For physicians and other high-income investors with a concentrated stock position, it may be one tool for managing the current tax cost of reducing single-company risk.

This article explains how capital losses may offset realized gains, why wash-sale rules matter, and the investment, tax, liquidity, and state-tax considerations involved in selling a concentrated holding. It also outlines why a diversified portfolio and a tax-efficient strategy should be evaluated together—not as separate decisions.