Concentrated Stock Comprehensive Guide eBook PDF version - Page 6

From the desk of

Gerry O'Connell Enrolled Agent

In the following pages, we will provide an overview on the new tax legislation and what the potential impact is on your investments. We'll highlight some tax-mitigation strategies for clients who have concentrated stock or significantly appreciated assets. Plus we'll dive deeper into a couple of popular strategies that you can use for low-cost basis stock, such as active tax-loss harvesting and Charitable Remainder Trusts (CRTs).

Tax laws change frequently and regularly...

Tax laws change frequently and we regularly update investors about tax- reduction strategies. We educate our clients about the possible impact on their investments and how to lower their taxes. In this overview, we look at a range of popular tax-mitigation strategies that we recommend for this year and for ongoing tax planning.

Contact us if you would like more information or to discuss these tax strategies, including exchange funds, opportunity zones, variable prepaid forward contracts, and donor-advised funds.

When tax laws change, we can help your tax planning change too.

Tax Planning, Partner

Integrating Tax- Reduction Strategies with Your Investments

With separate assets, investor actively generates losses

Start early with a program like this so harvested losses build up over time

Investor wishes to reduce risk and lock in desired standard of living

Sells concentrated stock and realizes capital gains, but gains can be offset by losses generated from active-tax loss harvesting strategy

 

Offset amount depends on losses harvested vs. gains realized

Proceeds from reducing exposure to concentrated stock position can be  reinvested into diversified portfolio for long-term growth or income stream 

Active tax-loss harvesting strategy can also be applied to the diversified portfolio

Proceeds from reducing exposure to concentrated stock position or diversified portfolio can be used for house purchase, children’s education, new car, vacation, etc.

Concentrated Stock Diversification

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