Selling Losers and Saving on Taxes

Imagine turning your investment lemons into financial lemonade. Tax loss harvesting lets you sell investments that have lost value to offset the gains from your winners, slashing your overall tax bill. It’s like finding a hidden bonus level in your favorite game!

Tax loss harvesting isn't just a year-end activity; it’s a strategy you can employ throughout the year to manage your tax burden effectively. By regularly reviewing your portfolio and selling underperforming investments, you can offset gains from your winners, reducing your overall tax bill. This continuous approach keeps you proactive and agile, avoiding the last-minute scramble at year-end.

The benefits? Lower taxable income and the ability to offset up to $3,000 of regular income each year. Plus, any additional losses can be carried forward to future years, providing ongoing tax benefits. Just remember the wash sale rule: avoid buying back the same or substantially identical investment within 30 days to ensure your losses are deductible.

Year-round tax loss harvesting helps keep your portfolio optimized and your tax liabilities in check. Need more personalized advice? Reach out for a consultation and let's make tax loss harvesting work for you all year round!