Ways to Pay Less in Taxes on Your Investments Next Year

Reporter: Rebecca Lake

Publication: US News


Deadline: May 8, 2017 7:00 pm

Tax season is over and if you paid more in taxes on your investments than you would have liked, looking for ways to cut next year’s bill starts now. A lot of people think of tax loss harvesting as something for the end of the year only but are there other times when this strategy might be appropriate? How can investors ensure that they’re harvesting losses appropriately? How important is asset location vs. asset allocation? For example, what assets would be better off in a tax-advantaged plan and which ones would be better suited to a taxable account? Are there certain investments that are more tax-efficient than others in relation to which tax bracket you’re in? What should investors keep in mind if they’re branching out into new asset classes in an attempt to make their portfolio more tax-efficient?

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