6 Ways to Lessen Your Investment Tax Burden

At Morris+D’Angelo, we have always prided ourselves in the way that we approach and consider challenges differently so that we may provide Financial and Business Solutions that perform for the best interests of our Customers’ Bottom-Line.
 
As a Tax and Business Advisory Firm that believes by helping our customers control their own financial information tools and systems as well as leverage our financial expertise toward our customer’s growth, they will flourish, and be empowered to seek their own paths to success.
 
With that in mind, here are six ways to lessen your Investment Tax Burden that we practice. 1  

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As often as every quarter, Morris+D’Angelo can look at your investments for opportunities to harvest any losses, and determine appropriate strategies. Some harvested losses can be used to offset year-end capital gains, up to $3,000 of ordinary income, or both

Stay Ahead and Lessen Your Investment Tax Burden

Objective: Minimizing Your Taxes 2  
With a plethora of strategies, it’s important to keep in mind that minimizing taxes at the expense of after-tax financial gain is not a prudent course of action. All strategies should be considered net of taxes and transaction fees.
 

• 1. Asset Location Optimization:
  One of the most effective ways to reduce your client’s tax bill is to implement a tax-efficient investment strategy. This strategy is particularly successful when clients have both taxable and tax-advantaged accounts (e.g., a traditional IRA and a Roth IRA).
   
  Interested in reducing your Tax Bill; Contact us today.
• 2. Tax-Managed Mutual Funds, ETFs, and Tax-Favored Assets:
  If you are committed to a particular investment strategy, it’s advisable to explore more tax-efficient means of obtaining similar investment exposure. Consider a tax-managed version of a mutual fund, an exchange traded fund (ETF), or tax-exempt municipal bonds.
   
  Contact us and find out how to stay ahead of tax-efficient strategies.
• 3. Minimize or Avoid Short-Term Gains:
  When reviewing last year’s tax forms, we may discover that you realized many short-term capital gains toward the end of the year. We can discuss strategies with you to better control your short-term capital gains, that are taxed at high ordinary income rates and may incur an additional net investment income tax.
   
  Contact us, we can guide you through tax strategies to better control your gains.
• 4. Re-balancing in Tax-Advantaged Accounts:
  The main advantage of re-balancing a portfolio is to control for its risk and return characteristics. You may need to purchase or sell funds near year-end for a variety of reasons. We can advise you on the mechanics behind mutual funds, that allow for the distribution of capital gains (and losses) to their shareholders regardless of how long the fund has been held.
   
  Contact us. We’re here to help you make good decisions re-balancing your investment portfolios.
• 5. Timing of Mutual Fund Purchases and Sales:
  We have found that some of our Customers may need to purchase or sell funds near year end for a variety of reasons. We regularly consult with our Customers on the mechanics behind mutual funds, that allow for distribution of capital gains (and losses) regardless of how long the fund has been held especially as they relate to capital gain distributions. This gives our Customers a critical handle on estimating and anticipating the tax impacts of mutual fund purchases and sales.
   
  Contact us and find out more about strategic Mutual Fund Purchases and When to Sell.
• 6. Tax-Loss Harvesting:
  Tax-loss harvesting should not be reserved solely for year-end planning.As often as every quarter, we can look at your investments for opportunities to harvest losses, and determine if and when the strategy is appropriate. There’s a real benefit to the strategy. Some harvested losses can be used to offset year-end capital gains, up to $3,000 of ordinary income, or both.
   
  Contact us for Tax-Loss strategies.

 
For Insights: Contact Us at Morris+D’Angelo
At Morris+D’Angelo, we often have the insight of our Customers’ entire financial history, that provides for opportunities for us to add value to you as an integral part of your Financial TEAM (Together Each Achieves More).
 
If you’re unsure where to begin, START by Contacting Us at Morris+D’Angelo.

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