An eye for the details may save you significantly when it comes to the tax consequences of the sale of an investment. It is not uncommon to buy a security at one price and sell it later for tax purposes, to either reduce gain or increase a loss to offset other gains. However, it is important to do it perfectly to avoid unexpected surprises at tax time. If you buy back a security that you sold at a loss too soon, the “wash sale” rules may prevent you from claiming the loss. Contact one of our expert financial advisers and tax consultants if you have any questions about an investment you are thinking of selling.

 These Two Factors May Save or Lose You Money at Tax Time:

  • Date of Sale - The trade date as opposed to the settlement date of publicly traded securities will determine the year you can recognize the gain or the loss. Keep this in mind, and your ultimate tax plan, as you go through the process of the sale.

  • Transaction Costs - These costs can have an impact on your net returns. Broker fees, over time, can add up and reduce the amount you can invest. Broker fees are a reality of selling an investment, however, and they should be considered when it comes time to sell.

Keep in mind that gain on a second home will be handled differently than the gain on your main home. This is another way that selling may cost you tax dollars.

Contact us to discuss the potential tax ramifications of an investment sale you may be considering. We can help you achieve your goals in the coming years with less unexpected losses due to overlooking details that you may not have known mattered. Our expert tax consultants and financial advisors can consider your options from every angle.