Andy Branz’s Post

An increasing number of stock market investors are seeing huge losses in their taxable brokerage accounts. In this article from The Nautilus Group, you’ll learn how taking advantage of tax strategies for those losses may reduce the economic cost and potentially improve your overall returns. Once you’ve read this informative piece, let’s talk about how you can benefit from this technique – and avoid common traps and pitfalls.

An increasing number of stock market investors are seeing huge losses in their taxable brokerage accounts. In this article from The Nautilus Group, you’ll learn how taking advantage of tax strategies for those losses may reduce the economic cost and potentially improve your overall returns. Once you’ve read this informative piece, let’s talk about how you can benefit from this technique – and avoid common traps and pitfalls.

An increasing number of stock market investors are seeing huge losses in their taxable brokerage accounts. In this article from The Nautilus Group, you’ll learn how taking advantage of tax strategies for those losses may reduce the economic cost and potentially improve your overall returns. Once you’ve read this informative piece, let’s talk about how you can benefit from this technique – and avoid common traps and pitfalls.

Instead of formulating a policy that is destined to fail, it would be more prudent to set a timeframe within which to develop and incorporate a software platform before thinking about capital gains tax from the stock market.

Booked loss of ₹1 lac and still made ₹15k, here's the deal: Mar 31st is round the corner, you may want to use this. Let's take an example: I invested in XYZ stock and it was down 20% in 6 months I invested ₹5 lacs and my unrealized loss was ₹1 lac Fundamentals were not there, but I kept holding on I also invested in ABC stock at the same time Within the same period my investment was up by 40% I invested ₹5 lacs and I realized a profit of ₹2 lacs But now I have to pay short-term Capital Gains tax Here's where Tax-Loss harvesting comes into play You can use losses to offset gains and pay lower taxes Here's how it works: [1] Without Tax-Loss harvesting ↳ Realized short-term gains = ₹2 lacs ↳ Short-term capital gains tax = ₹30k, i.e. 15% * ₹2 lacs [2] Now with Tax-Loss harvesting, here's the magic: ↳ Realized short-term gains = ₹2 lacs ↳ Realized short-term losses = ₹1 lac ↳ Short-term capital gains tax = ₹15k, i.e. 15% * ₹1 lac By selling your loss-making stock you were able to reduce your tax liability by ₹15,000. Of course you should sell if you are convinced the fundamentals are not there for the stock. Have you used this strategy before? What would you add? Few additional points in the comments below. Consult your tax advisor/CA and do your due diligence Tax is only one consideration while selling the stock P.S. REPOST THIS ♻️ to help others grow. ====== Follow me (Ritesh Sabharwal CFP®) as I Simplify Personal Finance and Investing

If you woke up tomorrow and your investment portfolio was all in cash, would you buy the same things you currently own? This thought experiment was introduced to me by Carl Richards in his book "The One-Page Financial Plan" years ago. While you don't necessarily want to sell off everything that doesn't fit what you would buy today (mostly because of taxes), it does help you understand what might be on the short list for replacement in the future when the time is right. All this said, I get questions regularly about holding onto RSU/RSA shares when they vest and NQSO shares when exercised for "tax benefits." There are no tax benefits for continuing to hold these shares. At RSU/RSA vesting, unless an 83b election was performed (this election cannot be done on RSUs, only RSAs), your basis and the FMV of the stock are the same. Selling and diversifying will create virtually no additional tax cost. At exercise of a NQSO, your basis and the FMV of the stock are the same. Your cost to exercise is basis. This is added to the bargain element, which is treated as ordinary income creating basis. Again, these shares can be sold at virtually no additional tax cost. So the question is, "if you had a chunk of money, would you invest in your company stock or something else?" While there are some reasons to own your company stock there are also a lot of reasons not to. Consider the pros and cons. Avoid familiarity and illusion of control biases. And most of all, forget about the IRS for once. This is the moment to make a move without additional tax costs.

Just came across an insightful article on the wash-sale rule in day trading. It dives into the IRS rule that prevents investors from creating artificial losses for tax benefits and how it affects day traders. Here are some key takeaways: - The wash-sale rule stops investors from claiming a capital loss if they repurchase a stock within 30 days of selling it at a loss. - Traders need to be cautious as the rule can impact the deductibility of losses and potentially increase the effective size of the loss. - It's important for day traders to understand the types of trades that can trigger the wash-sale rule, including ETFs and options. - Exploring options like the mark-to-market tax election can help day traders manage their tax implications effectively. What are your thoughts and experiences with the wash-sale rule in day trading? Share below! https://lnkd.in/ezisT5uW

Unlock the potential of stock options and equity-based compensation! 🚀 Learn how to navigate the tax landscape and maximize your financial gains with our expert insights. https://hubs.li/Q02wR9jX0

Tired of the dividend dilemma? 💸 Are you an owner-manager confused about dividends? Worried about accessing your hard-earned money? In this video, Dan cuts through the confusion and provides a clear, actionable guide to dividends. Learn about: Declaring and paying dividends Profit requirements and tax implications Dividend tax rates and allowances Watch now and take control of your finances. https://buff.ly/3Z9zwQp #dividends #smallbusiness #finance