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
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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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