Concentrated Stock Comprehensive Guide eBook PDF version - Page 12

Tax-loss harvesting is a process that can be done with any type of capital investments at any time of the year.

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Systematically selling a security that has experienced a loss

Harvested” losses can offset capital gains and some income

The sold security is replaced by a similar one, maintaining similar exposure and risk characteristics of a portfolio strategy, like the S&P 500 index

Due to IRS “wash sale” rules, the sold security cannot be bought back for 30 days

Examples of similar securities

Tax-loss harvesting Process and the Benefits

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Investments that have declined in value are sold.

Realized losses offset gains on income tax returns.

Losses can be carried forward and used to offset future gains.

What is Tax-Loss Harvesting?

Active Tax-Loss Harvesting

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