If you take a look at your investments and see that you have realized Capital Gains during the course of the year, it does become prudent to look at your portfolio to determine which items might generate a loss, so that you could either match your gains to your losses and/or exceed your gains by an amount of up to $3,000.00. That is the amount that would be available as a deduction on your income tax return to offset other ordinary income. While there are sound tax reasons for considering this strategy, it is also important to remember that you need to consider the underlying investment wisdom and considerations associated with your having purchased the investment in the first place.
By: Bruce M. Fogel, Esquire
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