Assume that one has the choice between taking long-term capital losses and short-term capital losses, and assume that, since the year hasn't ended yet, one doesn't know all the short-term and long-term capital gains.
Is there any upside in harvesting tax losses on long-term losses instead of short-term losses?
Long-term losses are first applied against long-term gains, and then against short-term gains. Meanwhile, short-term losses are applied first to short-term gains. This sequence takes place because long-term capital gains are taxed at a lower tax rate than short-term capital gains.
Since taxes on short-term gains are higher than taxes on long-term gains, I only see upsides in tax-loss harvesting short-term losses instead of long-term losses. Did I miss something?