Tax loss harvesting is one tool in the “tax management” arsenal to maximize one’s after-tax investment returns. It isn’t for everyone and should be carefully assessed for each individual situation.
For dentists who will sell their practices one day, banking capital losses that can be used to offset capital gains on the sale of goodwill is a huge win.
This article from financial writer and expert, Michael Kitces, illustrates the concept, and the tricky regulations one must navigate, extremely well. Also, there are related articles at the end that are very worthwhile reads.