Harvest Your Portfolio's Gains or Losses
Before year end, assess your investment portfolio and implement year-end investment strategies that can potentially minimize your tax bill. A tried-and-true strategy is harvesting gains or losses. Keep in mind that although the value of various investments may rise or fall during the year, these gains and losses exist only on paper and aren’t “realized” until you sell.
If you’ve realized net capital gains for the year, they’ll be taxed at rates as high as 20% for long-term gains and 37% for short-term gains. You also might owe state income tax and the 3.8% net investment income tax. To avoid this tax bite, consider “harvesting” available capital losses by selling investments that have declined in value and using the losses to offset your gains — but beware of the “wash sale rule.”
This material is generic in nature. Before relying on the material in any important matter, users should note date of publication and carefully evaluate its accuracy, currency, completeness, and relevance for their purposes, and should obtain any appropriate professional advice relevant to their particular circumstances.
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