Be strategic when realizing tax losses


There are many possible reasons why investors decide to harvest tax losses at the end of the year. Perhaps they take pride in their ability to select stocks, and they don’t want to regret bailing out too early. Or that it just doesn’t feel “right” to sell a security for a loss during the promise of the new year. But when December rolls around, they’re out of patience and their frame of reference switches: it feels like a good time to claim the tax deduction of a realized loss. The most common reasoning behind December loss harvesting is based on emotion and simple convenience, rather than strategic thinking.

Register or log in to continue reading. Investment Officer is an independent journalism platform for professionals working in the Luxembourg investment industry.

A subscription is free for professionals working at banks and independent asset managers.