Tax Management

Tax Management: Align your tax strategy with your investment strategy

As an investor with a taxable account, you may be subject to some type of regular payout that is taxable.  This could be in the form of dividends, interest, short-term capital gains or long-term capital gains.

Of course, the IRS will want a piece of that payout come tax time.

But there’s a way you could reduce your tax burden and keep more of your hard-earned dollars in your portfolio.  Tax harvesting can help you offset realized capital gains and other income- and potentially improve your overall tax situation.


The benefits of tax harvesting

Short-term capital gains can be taxed at combines state and federal rates of 40% or more, and long-term capital gains can be taxed at combined rates of 20% or more.  Tax harvesting is a strategy that enable you to realize short-term or long-term losses to offset these gains, and the tax savings could be substantial.

Tax harvesting is an attractive way to potentially reduce your annual tax bill.  In combination with a rebalancing strategy based on your desired asset allocation, you can manage the tax liability of your investment portfolio while maintaining the potential investment opportunity available through the markets.

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Securities offered through First Allied Securities, Inc. Member FINRA/SIPC. Advisory services offered through First Allied Advisory Services Inc., a registered investment adviser.

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