Looking to make your portfolio more tax-efficient? Tax-loss harvesting might be worth a look.
It’s a strategy where you sell investments that have dropped in value to offset gains elsewhere – potentially lowering your tax bill and boosting longterm returns. 2025 could be a good year to consider it. Market volatility has created more chances to realize losses, and upcoming tax law changes may make timing especially important.
But this strategy isn’t for everyone. It works best if you have taxable accounts, capital gains, and a longterm outlook. And you’ll need to follow IRS rules, like the wash-sale rule, which limits when you can buy back the same, or substantially identical, investment.
Sometimes, holding onto an investment and letting it grow over time may outweigh the benefit of lowering your capital gains tax this year.
Before making moves, talk to your financial advisor and tax professional to decide if tax-loss harvesting is right for you.
This content was provided by Edward Jones for use by Linda Drake, your Edward Jones financial advisor, at (480) 985-2651. Edward Jones, Member SIPC Edward Jones, its employees, and financial advisors cannot provide tax or legal advice. You should consult your attorney or qualified tax advisor regarding your situation.