{"id":6816,"date":"2015-12-16T08:59:47","date_gmt":"2015-12-16T16:59:47","guid":{"rendered":"http:\/\/blog.paladinregistry.com\/?p=6816"},"modified":"2015-12-16T08:59:47","modified_gmt":"2015-12-16T16:59:47","slug":"tax-loss-harvesting","status":"publish","type":"post","link":"https:\/\/www.paladinregistry.com\/blog\/investing\/tax-loss-harvesting\/","title":{"rendered":"Tax Loss Harvesting"},"content":{"rendered":"<p>If your stock portfolio is down this year, its not all bad news. \u00a0Investors can\u00a0deduct up to -$3000 of losses against their income each year. \u00a0This is in addition to taking Losses to offset Gains. \u00a0Generating a year-end 1099 with -$3000 net loss is optimal\u00a0for moguls\u00a0seeking\u00a0a tax break.<\/p>\n<p>Each\u00a0year is different. \u00a0This year may have produced\u00a0a\u00a0few more opportunities\u00a0to\u00a0take advantage of losses.<\/p>\n<p>Whether a\u00a0Stock Portfolio is Up or Down, you can\u00a0shoot\u00a0to close out the year with -$3000 of &#8220;realized&#8221; capital losses. \u00a0How? \u00a0You can sell-off holdings in the red\u00a0to accomplish this. \u00a0Yes, even if your\u00a0account is Up, it&#8217;s possible to\u00a0make it look negative on paper for the\u00a0year.<\/p>\n<p>For this objective, sometimes its smart to SELL what&#8217;s down in December to not only offset Gains made that year, but also offset income. \u00a0Losses exceeding -$3000 can be rolled forward 5-years.<\/p>\n<p>This is a popular way to manage yearly Capital Gains and Losses, known as &#8216;<span style=\"color: #0000ff;\"><strong><a style=\"color: #0000ff;\" href=\"http:\/\/www.investopedia.com\/articles\/taxes\/08\/tax-loss-harvesting.asp?header_alt=b\" target=\"_blank\" rel=\"nofollow\">Tax Loss\u00a0Harvesting<\/a><\/strong><\/span>&#8216;. \u00a0Its simply a method of selling stocks at a Loss to offset tax liability on Gains. There is no limit to the amount of Losses you can take to offset Gains. However a\u00a0net-loss\u00a0for the year can only be used to reduce\u00a0<strong>income<\/strong>\u00a0tax liability up to\u00a0<strong>-$3000<\/strong>\u00a0(<em>net losses exceeding -$3000 can be rolled forward up to 5-years).\u00a0<\/em><\/p>\n<p>If properly applied, &#8216;Tax Loss Harvesting&#8217; can help save money on taxes and assist in re-balancing a portfolio.<\/p>\n<p>The IRS restricts investors from improperly taking advantage of Tax Loss Harvesting with the\u00a0<strong>&#8216;<span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"http:\/\/www.investopedia.com\/terms\/w\/washsalerule.asp?header_alt=b\" target=\"_blank\" rel=\"nofollow\">Wash Sale Rule<\/a><\/span>&#8216;.\u00a0\u00a0<\/strong>A &#8220;wash-sale&#8221; negates the recognition of the tax loss. This occurs if an Investor attempts to re-purchase the same stock within 30-days.<\/p>\n<p>In other words, you can&#8217;t just Sell a stock to record a loss and buy it right back. \u00a0To count the loss on paper, you also have to avoid the stock for 30-days after the sale.<\/p>\n<p>Implementation of &#8216;Tax Loss Harvesting&#8217;<strong>\u00a0<\/strong>and &#8216;Wash Sales&#8217; are\u00a0not\u00a0a concern for IRAs, ESAs, and other tax-sheltered accounts. These rules apply to Taxable investment accounts only.<\/p>\n<p><strong>To learn more about Darren Fox, view his <span style=\"color: #0000ff;\"><a style=\"color: #0000ff;\" href=\"https:\/\/www.paladinregistry.com\/financial-advisor\/frisco-texas\/Darren.Fox\" target=\"_blank\">Paladin Registry profile<\/a><\/span>.<\/strong><strong>\u00a0<\/strong><\/p>\n<p><em>Investment advisory services are offered through Avenue Retirement Services, LLC, a Texas domiciled registered investment advisor. \u00a0Main Office: 2831 Eldorado Pkwy Ste 103-148, Frisco, TX 75034. \u00a0This communication is not to be directly or indirectly interpreted as a solicitation of investment advisory services to residents of another jurisdiction unless otherwise permitted. \u00a0Consult your CPA for specific tax advice. \u00a0Nothing in this document is intended as legal, accounting, or tax advice, and is for informational purposes only.\u00a0\u00a0\u00a0<\/em><\/p>\n<p><em>This material represents an assessment of the market and economic environment at a specific point in time and is not intended to be a forecast of future events, or a guarantee of future results. Forward-looking statements are subject to certain risks and uncertainties. Actual results, performance, or achievements may differ materially from those expressed or implied. Information is based on data gathered from what we believe are reliable sources. It is not guaranteed as to accuracy, does not purport to be complete and is not intended to be used as a primary basis for investment decisions. It should also not be construed as advice meeting the particular investment needs of any investor. Past performance does not guarantee future results.<\/em><\/p>\n<p>&nbsp;<\/p>\n","protected":false},"excerpt":{"rendered":"<p>If your stock portfolio is down this year, its not all bad news. \u00a0Investors can\u00a0deduct up to -$3000 of losses against their income each year. \u00a0This is in addition to taking Losses to offset Gains. \u00a0Generating a year-end 1099 with -$3000 net loss is optimal\u00a0for moguls\u00a0seeking\u00a0a tax break. Each\u00a0year is different. \u00a0This year may have produced\u00a0a\u00a0few more opportunities\u00a0to\u00a0take advantage of losses. Whether a\u00a0Stock Portfolio is Up or Down, you can\u00a0shoot\u00a0to<\/p>\n","protected":false},"author":81,"featured_media":6821,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"footnotes":""},"categories":[395],"tags":[],"class_list":["post-6816","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-investing"],"yoast_head":"<!-- This site is optimized with the Yoast SEO plugin v23.3 - https:\/\/yoast.com\/wordpress\/plugins\/seo\/ -->\n<title>Tax Loss Harvesting<\/title>\n<meta name=\"description\" content=\"If properly applied, &#039;Tax Loss Harvesting&#039; can help save money on taxes and assist in re-balancing a portfolio. 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