How can I minimize my capital gains tax?

How can I minimize my capital gains tax?

There are several strategies to minimize capital gains tax, such as holding investments longer, utilizing tax-loss harvesting, and investing in tax-advantaged accounts. Would you like to know more about any specific strategy?

What is tax-loss harvesting?

Tax-loss harvesting involves selling investments that have lost value to offset gains from other investments. This can reduce your overall tax liability. Do you want to know how to implement this strategy?

Yes, how do I implement tax-loss harvesting?

To implement tax-loss harvesting, identify underperforming assets in your portfolio, sell them to realize the loss, and then reinvest the proceeds in similar assets to maintain your investment strategy. Just be mindful of the wash-sale rule!

What is the wash-sale rule?

The wash-sale rule prevents you from claiming a tax deduction for a loss on a security if you buy the same or substantially identical security within 30 days before or after the sale. It's important to be aware of this when harvesting losses.