What Issues Should I Consider When Harvesting Capital Losses?

Tax-loss harvesting is a popular strategy, but it’s not always clear whether it’s the right strategy for your client’s needs.

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With this checklist, you will be better prepared to help your clients determine whether harvesting capital losses is appropriate for their financial situation.

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This checklist covers some key issues to consider when a client and/or advisor are thinking of implementing a tax-loss harvesting strategy, such as:

• The effect harvesting losses may have on your overall portfolio goals.

• Some common pitfalls and rules to be aware of when harvesting losses.

• The potential tax benefits and consequences that may arise.

• How long-term goals may be affected by tax-loss harvesting.

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