Concentrated Stock Comprehensive Guide eBook PDF version - Page 13

Projections Over Time

The “tax reduction” component, which directly reduces the current tax bill by offsetting gains on the Schedule D (1040) with harvested losses

The “reinvestment” component, which reflects the reinvestment of the tax savings (the tax reduction), which generates additional returns over time (this is akin to reinvesting dividend)

Estate / Donation Disposition

Note: The average path illustrated in this slide may not be representative of individual experiences.

Tax Alpha’s 2 Components Both Contribute