Basic Financial Intelligence is Fastlane: Some Simple Strategies to Use Now.

[aboutkaizen]

Hi MJ @MJ DeMarco , curious does this apply to us Non US Residents?

TAX LOSS HARVESTING: LOWER TAXES, STAY INVESTED

Ive been doing this with the markets going down, and it is worth mentioning...

Here's is AI explanation, which I edited for clarity and personal experience.

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Tax-loss harvesting lowers your taxes.

By selling investments that have dropped below your purchase price, you “realize” a capital loss that immediately offsets capital gains from winners—and if your losses still exceed gains, you knock as much as $3,000 off ordinary income this year and carry the rest forward indefinitely.

Here’s how you execute the maneuver: unload the losers in your taxable account, bank the loss, then redeploy that capital into a similar—but not “substantially identical”—holding so you stay fully invested. This dodge keeps you in the market while triggering the tax benefit.

• For example, you could dump QQQI (take the loss, lower taxes) and reinvest in JEPQ, a similar security.
• You could dump SPY (take the loss, lower taxes) and reinvest in QQQ, RSP, or EOS, similar ETFs.
• You could dump a VNQ ((take the loss, lower taxes) and reinvest in RQI (a similar REIT ETF)
• You could dump SMH ((take the loss, lower taxes) and reinvest in ARTY (a similar semiconductor ETF)
• You could dump VTI (Total market index fund) and reinvest in VOO (Index 500).

So if you dump $30,000 in losses early in the year, reinvest into similar securities, you then can realize $30K in short term gains, tax free later in the year. The presumes the securities are identical in its capital gains tax bucket (short and long-term capital gains are taxed differently.)

Do it strategically year-round or at year-end when you can see your gains and losses laid out. The payoff? Lowered tax bills, improved after-tax returns, and the ability to reinvest savings back into your portfolio instead of sending them to the IRS.

Warning: The “wash-sale” rule is a trap: buy the same security within a month before or after the sale, and the IRS disallows your loss, so be careful not to sell SPY at $10K loss, and then buy it back within 30 days, then that $10K is disallowed!

 

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[MJ DeMarco]

dasouat fuit vjot eqqmz vu at Pup AT Sitofipvt

O fup'v lpux -- iedj duapvsz jet foggisipv mext gus deqovem heopt veyit.

 

[Kevin88660]

Jo NK @NK FiNesdu , dasouat fuit vjot eqqmz vu at Pup AT Sitofipvt?

Zua dep huuhmi up vjev. Xovjjumfoph vey xovj gusiohp pevoupem (zuas uxp pevoupemovz), fiqipfoph up vji vey vsievz civxiip vji duapvsoit.

 

[aboutkaizen]

Zua dep huuhmi up vjev. Xovjjumfoph vey xovj gusiohp pevoupem (zuas uxp pevoupemovz), fiqipfoph up vji vey vsievz civxiip vji duapvsoit.

Je! Vjeplt gus vjot upi Tjuamf jewi fupi nz sitiesdj gostv cigusi katv etloph jisi.