Investor Minute

Checklist: Is Tax-Loss Harvesting A Good Strategy for YOUR situation?

Selling some investments that have unrealized tax loss has the potential to offset the tax liability that is triggered when other investments are sold at a gain. This strategy is called tax-loss harvesting, and it’s one we consider for our clients. Now is a great time for us – as a team – to take this strategy under advisement.

What may seem like a straightforward strategy, however, can be filled with subtle complexities that we should explore.

There are a lot of issues to consider. A few include whether you:

Anticipate a tax rate change;
Have realized gains or losses, or even losses that you’re carrying over from previous years, which may affect your tax-loss harvesting strategy;
Plan to reinvest your tax savings for future growth.

The decision to pursue a tax-loss harvesting strategy can be highly individualized. In addition to general issues, there are tax considerations, long-term issues, and implementation concerns that should factor into your well-thought-out decision. You can count on us to walk you through the important points so you are confident you’ve taken the actions that will support your long-term financial plan.

To facilitate a productive discussion, we have a checklist that outlines 16 considerations that are fundamental to evaluating whether or not to harvest capital losses. Click here to see the checklist.

While the checklist can help you spot good ways to identify all the different opportunities to consider, we are always available to meet with you to discuss your finances and goals and to identify what the best opportunities are for you.

Please contact us today to schedule a time to discuss a tax-loss harvesting strategy further, or click here to schedule a free call with me.