Capital Gains

A Tax Upon Your Gains

It’s mutual funds distribution season. Many mutual funds will be calculating up their profits and distributing the capital gains to shareholders over the next two months. What many shareholders don’t understand, however, is that mutual fund capital gains tax is their responsibility, not the fund’s. How can you help your clients avoid tax surprises when…

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Watch Out for the Wash Sale Rule When Harvesting Losses

In a down market, many investors look for opportunities to reduce tax liabilities by harvesting losses. As you’re considering selling assets, however, one important regulation to keep in mind is the Wash Sale Rule, in which the IRS can disallow a tax deduction for a security. A wash sale occurs when an investor sells or…

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6 Things to Know About Harvesting Capital Losses

When markets experience a significant downturn, it can be challenging to find a “bright spot” in the midst of bad news. However, opportunity for investors still exists even when markets drop. One such opportunity is the ability to potentially reduce taxes by harvesting capital losses. When an investor sells an asset at a loss, that…

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