Cut Your Taxes By Taking Investment Losses Before December 31

Investment losses don’t sound like a good thing, but they can be at year-end.

That’s when we start scouring your portfolio to look for opportunities to lock in capital losses for the year. By selling investments at a loss, we can offset gains elsewhere in your portfolio and generate up to a $3,000 net tax loss.  That can save you on your 2017 tax bill.

Even in a year of strong market performance like this one, there are plenty of losses out there.

Believe it or not, 137 members of the S&P 500 are showing a loss this year, says columnist John Waggoner for Investment News, including energy giant ExxonMobile (XOM), down over 7% at the end of October, AT&T (T), down 17.1% and General Electric (GE), down 29.4%.

Of course, taxes should be only one factor in your decision to buy or sell an investment, but smart tax strategies are extra important this year, as we wait to see if proposed tax changes in Congress might bring lower taxes in 2018.

About Mari Adam

Mari Adam, Certified Financial Planner™ has been helping individuals and families chart their financial futures for over twenty-five years. Have a question about your financial situation? Ask Mari!

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