4 Things to Consider Before Tax Harvesting!

if you take one this away from this writing it is to…..BE PROACTIVE. Tax planning requires that you actually do this before it’s time to sit down and do your taxes. Get with your Financial Advisor and other qualified Tax Professionals and make sure the decisions you make are in line with your long term investment goals.

Here we go!

To harvest or not to harvest?

#1) Evaluate whether you could benefit from tax-loss harvesting – selling a losing investment to offset gains. The first $3,000 (single or married filing jointly) offsets ordinary income. Excess losses also can be carried forward to future years. With your CPA/Qualified Tax Professional examine the following subtleties when aiming to decrease your tax bill:

#2) Remember short-term capital gains are taxed at a higher marginal rate; so aim to reduce those first.

#3) When evaluating your gains and losses and the underlying securities you need to consider your long term investment objectives. Can that security be replaced by a similar one? Does this investment currently fit into my long term plan.

#4) Most importantly, be aware of “wash sale” rules that affect new purchases before and after the sale of a security. If you sell a security at a loss but purchase another “substantially identical” security – within 30 days before or after the sale date – the IRS likely will consider that a wash sale and disallow the loss deduction. The IRS will look at all your accounts – 401(k), IRA, etc. – when determining if a wash sale occurred.

My name is Derrick Glencer I am a CERTIFIED FINANCIAL PLANNER™ Practitioner if you enjoyed this content you can book a no obligation consultation via Calendly at:

https://calendly.com/djgcfp Or directly through email at:

derrick.glencer@raymondjames.com

I can also be found on social media at:

LinkedIn: https://www.linkedin.com/in/derrick-j-glencer-cfp%C2%AE-026b125/

FaceBook: https://www.facebook.com/DerrickGlencerRJFS

Twitter: https://twitter.com/djgcfp

Thank you very much and go make it a great day!

Any opinions are those of Derrick Glencer and not necessarily those of Raymond James. Expressions of opinion are as of this date and are subject to change without notice Investing involves risk and you may incur a profit or loss regardless of strategy selected. Every investor's situation is unique and you should consider your investment goals, risk tolerance and time horizon before making any investment. Prior to making an investment decision, please consult with your financial advisor about your individual situation. Investment advisory services offered through Raymond James Financial Services Advisors, Inc. Securities offered through Raymond James Financial Services, Inc., member FINRA/ SIPC.

Certified Financial Planner Board of Standards Inc. owns the certification marks CFP®, CERTIFIED FINANCIAL PLANNER™, CFP®(Plaque design) and CFP®(with flame design) in the U.S., which awards to individuals who successfully complete the CFP Board’s Initial and ongoing certification requirements

Neither Raymond James Financial Services nor any Raymond James Financial Advisor renders advice on tax issues, these matters should be discussed with the appropriate professional.