Tax Harvesting Strategy

Tax-loss harvesting is a smart investment strategy that helps you reduce your tax burden while keeping your portfolio on track. By strategically selling investments that have declined in value, you can offset capital gains and even reduce your taxable income.

How Tax-Loss Harvesting Works

1️⃣ Sell Underperforming Assets – Identify investments that are at a loss and sell them to realize the loss.
2️⃣ Offset Capital Gains – Use those losses to offset taxable gains from other investments.
3️⃣ Reduce Taxable Income – If your losses exceed your gains, you can use up to $3,000 per year to offset regular income (or $1,500 if married filing separately).
4️⃣ Reinvest Smartly – Purchase a similar asset (without violating the IRS wash-sale rule) to maintain your investment strategy.

Why It Matters

✅ Lower Your Tax Bill – Reduce the amount of taxes owed on capital gains.
✅ Improve Portfolio Performance – Rebalance your portfolio while minimizing tax impact.
✅ Long-Term Growth Strategy – Keep more of your money invested for future gains.

Tax-loss harvesting is particularly effective for high-income investors or those with large taxable investment accounts. At Xpand, we help you navigate this strategy to optimize your portfolio and minimize taxes.