Word of the Week: TLH (Tax Loss Harvesting)

Tax Loss Harvesting (TLH): This tax strategy involves selling an investment which has experienced a loss to reduce your tax bill. Typically, the proceeds are used to reinvest in a similar security to maintain exposure to the asset class. You may be able to offset any capital gains you have or even deduct up to $3,000 in losses each year against ordinary income and carry forward any excess losses to be used in the next tax year.

Level Financial Advisors
Level Financial Advisors