The 7 End-of-Year Banking Moves That Can Save You $1,000s on Taxes

Harvest Tax Losses

Tax-loss harvesting is a strategic move that involves selling investments at a loss to offset capital gains from other investments. This strategy can be particularly beneficial at year-end, allowing you to reduce your taxable income by offsetting gains with losses. If your losses exceed your gains, you can use up to $3,000 of the excess loss to offset other income. Any remaining losses can be carried forward to future tax years. This approach not only helps in reducing your current tax liability but also provides a strategic advantage for future tax planning, making it a powerful tool in your financial arsenal.