Sentences with phrase «loss harvesting means»

If you're like many people who don't have any idea what tax - loss harvesting means, here's the basics: You pay taxes on your investments.

Tax - loss harvesting means a losing position is sold to «harvest» the tax deduction to offset capital gains for gains and dividends, reducing the investors» tax bill.

Not exact matches

«Discount brokers and no - commission ETF trades have really reduced the friction for harvesting losses, which generally is a good thing, but it also means people are trying to harvest smaller losses and risking higher short - term capital gains,» Kitces said.

If you've got an investment property that you plan to sell and you know there'll be a huge capital gains tax bill coming up, tax - loss harvesting now when the markets are down means new, cheaper investments purchased today and a nice tax credit that can be used in the future.

This may not sound like a big deal until one realizes that the Sabbath also comes around in the midst of harvest season, when the loss of one day's work can mean the loss of thousands of dollars.

The authors warned a loss of diversity meant more people were dependent on key crops, leaving them more exposed to harvest failures.

By harvest, we mean that you will sell investments that have decreased in value and use those losses to decrease your income tax bill.

This means we do things like automatic rebalancing, dividend reinvesting, and tax loss harvesting — services that most people couldn't afford until now or found too time - consuming and tedious to do on their own.