Investment Losses Can Mean Tax Savings



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It has been a volatile year in the markets and many portfolios have accumulated sizable losses.  It may make sense to perform tax loss harvesting to make the most of these losses.

Tax loss harvesting is a practical move that can result in thousands of dollars in tax savings.

Each year, we assess our clients’ portfolio gains and losses to determine if there are securities trading at a loss.  If so, these positions can be sold to recognize tax losses.  By selling loss positions, investors will generate capital losses which may offset current year capital gains, either from their portfolios or any other source.

When you file your tax return, realized capital losses will offset gains from the sale of stocks, real estate or even a private business. In addition, capital losses that exceed current year capital gains can offset up to $3,000 of taxable income in 2018, and any excess losses will be carried forward indefinitely and used to reduce income taxes in the future.

See if you can benefit.

If you are not one of our financial advisory clients, you will need to make sure to handle this on your own or ask your broker or financial advisor to do this for you. It’s certainly worth taking a look to see if this move could save you money.

If you would like our help in reviewing your personal situation, we would be happy to assist.  Just email or call us to arrange a time to visit.

Horizon Wealth Advisors is a Houston based fee-only wealth management firm. Horizon is a fiduciary advisor. We specialize in helping successful individuals and families understand, organize, and manage their often complex financial situations. Horizon offers integrated financial planning and investment management services.

Larry Maddox, CFP®, CPA
Larry founded Horizon Advisors, LLC in Houston, Texas in 1999 with fellow business partner Joe Thomson. He collaborates with our wealth management team and other external advisors to provide comprehensive wealth management services.

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