Reinvest

Reinvest the money in the business.

Jeff Bezos, Amazon's founder and CEO, has traditionally focused on reinvesting all (or almost all) profits back into big bets like fulfillment centers, hardware, video streaming and cloud computing. When Amazon chooses to turn the knobs slightly down on how much it reinvests and posts a slight profit, investors cheer.

Ideally when you harvest a tax loss you will immediately reinvest the money from the sale into an asset that is similar but not “substantially identical” to maintain the same exposure to a sector or asset class.

Quarterly or annual dividend payments provide good income streams for investors who need cash in the short-term. And for those playing the longer game, dividends can be reinvested to buy even more shares in those same companies.