As we approach the end of the year, it’s a great time to review your investment portfolio and consider potential strategies to minimize your tax liability for the upcoming tax season. One key area to evaluate is capital gains and tax-loss harvesting.
If you’ve realized capital gains during the year – whether from the sale of investments, real estate, or other assets -you may be able to offset some or all of those gains through strategic tax-loss harvesting. This involves selling investments that have declined in value to realize losses, which can then offset capital gains and, in some cases, reduce your ordinary taxable income.
Here are a few important considerations:
- Review your portfolio to identify positions with unrealized losses.
- Be mindful of the wash-sale rule, which disallows a loss deduction if you repurchase a substantially identical investment within 30 days.
- Consider your overall investment goals and long-term tax strategy before making changes.
If you’d like to review your current tax situation or explore tax-loss harvesting opportunities before year-end, please contact our office to schedule a consultation, or contact your financial planner to review your portfolio and discuss these tax strategies. Taking action now can help ensure you’re in the best position possible when tax season arrives.
Call us today with any questions. We can help you plan ahead! https://www.etataxaccounting.com/