dowell | Moment | Getty ImagesIf you're sitting on profitable assets, there's a lesser-known tax-gain harvesting strategy, which can help rebalance your portfolio or trim future taxes.
While tax-loss harvesting can be popular during a stock market downturn, tax-gain harvesting — or strategically selling appreciated brokerage account assets — can also be beneficial, depending on your financial goals, experts say.
One of the key opportunities for tax-gain harvesting is for investors who fall into the 0% capital gains bracket, which applies to long-term capital gains, or assets owned for more than one year.
The 0% bracket allows you to sell a certain amount of profitable assets without triggering capital gains taxes, which provides a chance to take the proceeds or rebalance your portfolio, according to Brown.
While the so-called wash sale rule blocks investors from claiming a tax benefit after selling a losing asset and repurchasing within 30 days, the law doesn't apply when harvesting gains, Collado said.
Persons:
dowell, Judy Brown, Brown, Marianela Collado, Collado
Organizations:
SC, H, D.C, Financial, CPA
Locations:
Washington, Baltimore, Plantation , Florida
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