Tax Management

Tax Management: Align your tax strategy with your investment strategy

As an investor with a taxable account, you may be subject to some type of regular payout that is taxable.  This could be in the form of dividends, interest, short-term capital gains or long-term capital gains.

Of course, the IRS will want a piece of that payout come tax time.

But there’s a way you could reduce your tax burden and keep more of your hard-earned dollars in your portfolio.  Tax harvesting can help you offset realized capital gains and other income- and potentially improve your overall tax situation.

 

The benefits of tax harvesting

Short-term capital gains can be taxed at combines state and federal rates of 40% or more, and long-term capital gains can be taxed at combined rates of 20% or more.  Tax harvesting is a strategy that enable you to realize short-term or long-term losses to offset these gains, and the tax savings could be substantial.

Tax harvesting is an attractive way to potentially reduce your annual tax bill.  In combination with a rebalancing strategy based on your desired asset allocation, you can manage the tax liability of your investment portfolio while maintaining the potential investment opportunity available through the markets.

 

This information is intended for informational purposes only and is not intended to be a substitute for professional tax, legal or investment advice.  First Allied Securities does not provide tax advice.

Securities offered through First Allied Securities, Inc. Member FINRA/SIPC. Advisory services offered through First Allied Advisory Services Inc., a registered investment adviser.

This site is for informational purposes only and does not constitute an offer to sell or a solicitation of an offer to buy any security which may be referenced herein. We suggest that you consult with your financial or tax advisor with regard to your individual situation.
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