Let's say you accidentally use bleach on your nice white sheets and all the body oils get bonded to the fabric and are yellowing.

Everything is getting kicked in the teeth right now. 

You can invest the capital gains generated from the sale of assets such as stocks, bonds, real estate, cryptocurrency, etc.

I understand annuities, bonds, bank accounts but bitcoin?

You can't sell a portion of a property like you can sell portions of stocks, bonds, mutual funds, etc.

Morris.. you can spend your way out of civil litigation.. but the AG's in NJ and IN  sink their teeth in and there are criminal complaints..

But like with all laws unless its enforced and has some teeth wholesalers wont give a rip they will just break the law and keep going until they are stopped.I wonder what companies like Great Western are  going to do. they have a big philly operation that deals in the low income areas where a lot of these deals are done. 

Problem is only "RE pros" get to do it.There are 3 income classifications in the US - Active, Portfolio, and PassiveActive income is income derived from your job, or normal trade or business.Portfolio income is derived from bank instruments - stocks, bonds, etc.Passive income is income earned from investments.Active losses can wipe out both passive and portfolio income, but it doesn't work the other way around.Portfolio (capital) losses are limited to $3,000 annually.Passive losses can only be offset by passive gains.Real estate rental income by its nature is deemed passive per IRC Sec 469One way to get around it is to become a pro - spend more than 750 hours or 1/2 your time in real estate.But most folks aren't real estate pros.

I’m aware of loss harvesting when it comes to stocks, bonds, etf’s, etc. but how can this occur with real estate?

Like you would go to the dentist if your teeth are aching rather than going to the barber.As I keep repeating when encountering this kind of chatter, everybody is entitled to their opinions but not to their own facts so let's look at the facts, shall we?