Portfolio Review for 2011 Tax Loss Harvesting Opportunities

Each year, we assess our clients’ taxable gains for the year and review each of their portfolios to determine if there are securities that could be sold to recognize tax losses. By selling loss positions and recognizing the loss, an investor can offset current year capital gains as well as a limited amount of other taxable income. This is a practical move that can result in thousands of dollars of tax savings. By selling loss positions, investors will generate capital losses which can be used to offset current year capital gains from any source.

For example, gains from the sale of stocks or real estate or even a private business can be offset by losses from other investment assets. In addition, losses which exceed current year capital gains can be used to offset $3,000 of taxable income in 2011, with any balance carried forward indefinitely and used to reduce income taxes in the future.

If you are not one of our financial advisory clients, you will need to make sure to handle this on your own or ask your broker or financial advisor to do this for you. It’s certainly worth taking a look to see if this move could save you money.

If you would like our help in reviewing your personal situation, we would be happy to assist.  Just email or call to arrange a time.


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