It is easy to feel depressed when the stock market is tumbling and reaching new lows every day, but there could be a silver lining to that financial cloud. Engaging in strategic tax loss harvesting now could reduce your tax bill substantially when filing season rolls around. Tax-loss harvesting is when you sell investments at a loss in order to reduce your tax liability.
If you have investments that have not worked out like you hoped, selling them now and locking in the loss can be a great way to offset capital gains and lower your taxable income. This strategy is not the right choice for everyone, but it can be effective in certain circumstances.
Whether the world is in the midst of a global pandemic, the stock market is in free fall or real estate is suddenly on sale, the economic crises that are triggered can make tax time even more difficult.
If you want to stay financially solvent and avoid penalties, interest and other serious consequences, the strategies listed above can help you do it.
IMPORTANT: Our firm specializes in tax resolution. We also serve clients virtually so don’t hesitate to reach out. If you want an expert tax resolution specialist who knows how to navigate the IRS maze, reach out to our firm and we’ll schedule a no-obligation confidential consultation to explain your options to permanently resolve your tax problem. Click to make an appointment! Or call Toll-free 1-855-254-1892
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