This can be a useful strategy, especially when rebalancing, since it would not only provide a benefit to the investor come tax time, but it would also bring the account back into balance. Tax-loss harvesting can be beneficial for the right investors. However, like most investment or tax strategies, it’s best to rely on your advisors to determine if this strategy is appropriate for you.
Over the past three weeks, we have covered a number of different topics that relate to year-end tax planning. As we have stated throughout this series, consulting with your investment counsellor and tax advisor is important. Tax laws are extremely complex. Even though something may apply generally, that doesn’t mean that it will necessarily apply to your specific circumstances. Only your advisors, who know your own personal circumstances, will know how these tax laws and strategies apply to you. Many of the strategies discussed take careful planning and detailed knowledge to implement properly. Improper implementation can turn what could be a valuable strategy into a costly mistake.
That wraps up our series on year-end tax-planning. If you have any questions on how you can apply these tactics to your year-end tax planning, be sure to get in touch with your Investment Counsellor and Tax Adviser.