A continuous tax-loss harvesting approach requires a diligent process consisting of three main components: (1) Analyze the cost vs. benefit of every trade to avoid realizing losses that may quickly reverse into gains and to prevent unnecessary portfolio turnover; (2) Control for wash sale violations by monitoring for the sale and repurchase of the same security within a 31-day period, as violations render the loss ineligible for tax purposes; (3) Incorporate up-to-date pricing data from the start of the trading day to ensure accurate loss-taking decisions.

Authors

• Person: Not available Organization: J.P. Morgan Asset Management
  Continuous tax-loss harvesting yields more potential for tax savings

Sources

• Continuous tax-loss harvesting yields more potential for tax savings am.jpmorgan.com J.P. Morgan Asset Management via serper

Referenced by nodes (2)

• wash-sale rule concept
• tax-loss harvesting concept