Chances are you’ve seen the term “tax loss harvesting” if you’ve read about popular robo advisors such as Wealthfront and Betterment. Both of these services offer it as a feature. But what exactly is tax loss harvesting, or TLH, and how can it help your investment portfolio?
It’s that time of year again… No sooner do you finish nursing off your New Year’s hangover than it’s time to start thinking about filing your taxes.
Tax season is over and you’ve filed either your return or your extension. But before you put away those documents, take some time to look at it as a financial planning tool. There’s a wealth of information there that can be very useful to you… if only you know where to look.
It’s that time again… like a bad penny, Tax Day keeps turning up, year after year. But while for many of us investors the tax filing deadline is enough to induce a headache, it doesn’t have to be that way. Especially since there is plenty of tax software to make this annual chore a whole lot easier.
It’s that time of year — if you collect any kind of income at all, you need to be ready to file your income tax return. This puts a special burden on investors, which is why we’ve provided a simple checklist for organizing your investments for income tax preparation.
Investors don’t just gain advantages when they receive dividends or see significant capital appreciation; they might also receive tax advantages, depending on the type of investment income that they receive. As you prepare to file your taxes (the deadline is quickly approaching) keep in mind that there are likely extra tax forms required because of the various income sources from your portfolio.
The tax code is complicated and getting more so all the time. No matter how much investors try to adapt to the changes, there’s usually no way to stay on top of everything all the time. There’s an art to lowering your tax liability (largely through tax diversification), but there’s also a limit as to how far you can and should go. To help stabilize the ups and downs of tax laws, consider this tax diversification strategy.
As another year draws to a close, it’s time to start thinking about taxes, perform a review of your finances and investment portfolio, and figure out what moves you should take before the end of the year. No one likes to pay more taxes than they have to, so we’ve interviewed an expert who shares the best year-end tax tips for your portfolio.
We all want to pay less less, but what’s legal and what’s illegal? There are three basic strategies to pay less taxes and keep more of your money — tax avoidance, tax deferral, and tax evasion. Two are perfectly legal, but practicing one of them could lead to some serious jail time.
One of the realities of our current tax system is that we are required to pay taxes when we log gains from our investments. So, if you sell a stock, you will need to pay taxes on the gains. The good news is, that you don’t have to pay taxes on this type of income until you sell and lock in the gains.