The tax incentives for those loses remained with the company, while the investors
lost their investment in whole or in part.
«Tax loss harvesting» is the name for the strategy of going through your taxable accounts and
selling losing investments for the potential tax benefit.
It is true that you might get huge returns when you invest in mutual funds, as well as the possibility of
losing your investment if things go bad.
For example, if you've
lost investment property to foreclosure and a deficiency judgment has been entered against you, a subsequent lien on your primary residence may remain even after the bankruptcy.
These transactions, which are known as «deferred exchanges» or «1031 exchanges», allow investors to continue his investment in another property
without losing investment equity to taxes.
They don't expect to
lose their investment when they buy your business, but they won't feel confident until they take a peek behind your data - lined curtain.
In recent year, it has faced hard times with the meltdown of the stock market, after which many
collectors lost their investments and are now in a bad position to buy art.
While the potential returns may look attractive, these projects are mostly unregulated and the chance
of losing your investment is high.