Ingenious Way To Cut Your Tax Bill | Tax Loss Harvesting Explained
Tax Loss Harvesting can ease the pain during stock market crashes by reducing investors' tax bills. Doing this intelligently allows you to maintain a similar portfolio, yet save on taxes. Watch this video to find out how!
📈 LIMITED TIME: Get 6 free stocks from Webull (worth up to $1600!): https://act.webull.com/invite/share.h...
💸 Get $10 in crypto with Coinbase: https://www.coinbase.com/join/varma_r74
🤑 Get $50 for crypto passive income with Celsius: https://celsiusnetwork.app.link/14022...
✦ Get $20 with Rakuten cashback: https://www.rakuten.com/r/AWESOM2664?...
👉 Invest with Robinhood for a free stock: https://join.robinhood.com/arjunv26
Tax loss harvesting is the process of writing off investment losses in order to reduce your tax bill. These losses offset capital gains from other investments and/or income upto $3000 per year. It is only possible in a taxable account - retirement vehicles like 401ks and IRAs don't stand to benefit.
However, doing this blindly may not be the best idea - losses occur when your investment goes down in value which is usually not a great time to sell. This video walks through an example of "smart tax loss harvesting" using VTI and VOO as examples.
You have to watch out for wash sales. This states that you can’t just rebuy the same investment within 30 days of selling. You also can’t buy in the 30 days before you sell unless you sell all the shares you just bought. If you do violate this, the basis resets and you get no tax breaks.
The higher your income and investments are, the more valuable tax loss harvesting becomes. However, tracking different accounts, dividends and wash sales does require some leg work. So personally, I wouldn’t consider doing it if I only end up saving small amounts.
🕒 Timestamps:
0:00 - Intro
0:44 - What is Tax Loss Harvesting?
2:21 - The problem
2:54 - The smarter way
5:17 - What to watch out for
6:56 - Is it worth it?
.................
✅ Don’t forget to LIKE, SHARE, AND SUBSCRIBE!
📸 Follow me on Instagram! / financewitharjun
📝 For business inquiries, contact [email protected]
.................
💰 MY FAVORITE CREDIT CARDS:
○ Earn $200 cash back with Chase Freedom Flex or Freedom Unlimited credit card.
https://www.referyourchasecard.com/18...
○ Become a Discover Cardmember and get a $50 Statement Credit https://refer.discover.com/s/ARJUN69
.................
📓 MY FAVORITE PERSONAL FINANCE/INVESTING BOOKS:
I Will Teach You to be Rich by Ramit Sethi: https://amzn.to/3aDJeTj
Little Book of Common Sense Investing by Jack Bogle: https://amzn.to/37NeWfb
Rich Dad Poor Dad by Robert Kiyosaki: https://amzn.to/3nQ4VDp
The Intelligent Investor by Benjamin Graham: https://amzn.to/3mHzyK1
The Millionaire Next Door by Thomas Stanley: https://amzn.to/2KPES0w
.................
🎥 MY FILMING GEAR:
Canon EOS M50: https://amzn.to/3lVAeMe
Rode VideoMicro: https://amzn.to/2KwhULP
Neewer Ring Light: https://amzn.to/3pOJFiJ
Camera Bag: https://amzn.to/2V37sxv
128 GB SD Card: https://amzn.to/3976urW
.................
ABOUT ME:
I want to share stories and lessons learned while first moving to America, planning my journey to financial literacy, and adopting best practices into my life. As an international, it was difficult to find relevant resources to understand the aspects of life that were different in a new country. This channel is a comfortable space to have those discussions and help each other out!
DISCLAIMER:
1. The advice provided in this video is for informational/entertainment purposes only. The creators take no responsibility for any actions or decisions you may take based on the contents of the video. Please consult a professional for strategies related to your specific needs.
2. All the numbers/information are presented as of the video filming date and may change by the time viewers end up watching the video.
DISCLOSURE:
Some of the links in this description are promotional links, meaning that I may receive a small commission when you sign up for these services at NO EXTRA COST TO YOU. Thanks for supporting me :)
Watch video Ingenious Way To Cut Your Tax Bill | Tax Loss Harvesting Explained online without registration, duration hours minute second in high quality. This video was added by user Finance with Arjun 07 June 2022, don't forget to share it with your friends and acquaintances, it has been viewed on our site 1,962 once and liked it 61 people.