7 Issues That Can Complicate Tax-Loss Harvesting

Tax-loss harvesting is a solid strategy that many advisors use to help mitigate the bite that realizing capital gains can impose on clients in taxable accounts. When clients sell appreciated holdings, these gains can be offset in whole or in part by realizing losses on other holdings in the client's portfolio. While this can be a good way to try to minimize your client's tax bill, like any planning strategy. tax-loss harvesting should only be done when it fits with your client's overall investing and financial planning strategy. Here are seven issues to consider when tax-loss harvesting for your clients.