Ariel Friedler presents 4 Tax Loss Harvesting Tips for Beginners

4 Tax-Loss Harvesting Tips for Beginners

Tax Loss Harvesting

When beginning in investing, there is a lot to learn, and many things I wish I knew earlier. One concept I’d like to share with you is called tax-loss harvesting, which is gaining in popularity among investors but still not widely known or understood.

Tax-loss harvesting is the practice of selling a security that has declined in value. By realizing a loss, or “harvesting”, a deduction is generated that can offset the taxes owed on other securities that gained in value. Proper tax-loss harvesting can also help lower taxes on income earned that year.  All told, investors can save thousands of dollars annually through tax-loss harvesting.

When market turmoil puts stocks in the red, harvesting losses could be a silver lining for many investors.

Here are 4 tips to get started with tax-loss harvesting:

1. Consult your Financial Advisor. Ask your advisor to review your portfolio to determine which securities you can target for tax-loss harvesting.

Ariel Friedler Tax Harvesting Tip 1 Consult Your Financial Advisor

2. Carry Over Benefits. Losses from tax-loss harvesting that cannot be applied this year, can be carried over indefinitely into future years.

Ariel Friedler Tax Harvesting Tip 2 Carry Over Benefits

3. Understand the “Wash-Sale Rule” of Tax-Loss Harvesting. The wash-sale rule bars investors from buying the same or substantially similar stock again for 30 days.

Ariel Friedler Tax Harvesting Tip 3 Understand Wash-Sale Rule

4. Year-Round Tax-Loss Harvesting. Ask your financial advisor to set up a plan in 2024 that looks for tax-loss harvesting opportunities throughout the year.

Ariel Friedler Tax Loss Harvesting Tip 4 Year-Round
Ariel Friedler
Ariel Friedler
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