Still beating yourself up with that investment you made in that great company you read about? Perhaps now is the time to have it work for you.
Consider selling any underperforming stocks in taxable accounts before year end to offset it against other gains you may have made in other investments.
You can deduct capital losses up to $3,000 (or $1,500 if you are married and filing separately) against ordinary income. This will lower your taxable income and make you feel better about a not-so-great investment.
Do your losses exceed $3,000? No need to be concerned – you can carry those losses to future years and still get a benefit.
So let’s start the New Year with a clean portfolio that you can be proud of. Take a look at those investments before it becomes another forgotten resolution.
Check out our prior year end tax tips, and look for more in the coming days and weeks. Check back here regularly for more tips - or call us for custom advice for your business or personal tax returns
