Tax Loss Realization : We will begin soon!

In taxable accounts at this time of the year we make adjustments to portfolios to realize taxable losses. What this means is we sell an investment and immediately replace this investment with a similar, but not the same investment.

As an example let’s use an international investment. Due to the capital market moves and the flight to safety from international investors which resulted in moving the US dollar higher as of late, international investments are showing losses for most investors. The current tax law allows for $3k of losses over and above total gains realized for the current tax year to be deducted from an investors federal income taxes.

In an effort to help with investors taxes, we will make adjustments to realize taxable losses over the next several weeks. We will immediately re-invest an approximately equal amount of investment dollars into a similar asset category. We re-invest in order to continue our properly allocated portfolios as we do not know when markets will begin moving higher. JK

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