I've been buying 6-month treasury bills. The interest is taxed at maturity as interest income. If however it could be taxed as short-term capital gains, I could avoid paying any taxes on it because I have substantial capital losses from tax loss harvesting.
When buying a t-bill, it's purchased at a discount to par value, and at the maturity date you get the full par value. The closer the maturity date gets, the more you can sell the t-bill for.
Can I simply sell the treasury bills a few days before maturity to essentially convert the interest income into short-term capital gains?
I know t-bonds have "accrued interest" when you sell which would be taxed as interest income, but does this apply to t-bills as well? From my searching, it doesn't seem like it would, but I'm not completely sure.