Jamie Golombek: Here's what to do now to reap significant tax savings when you file your 2018 tax return next spring
With just days to go before Dec. 31, here’s some last-minute tax-planning ideas to contemplate during the final week of the year that could reap significant tax savings when you file your 2018 tax return next spring.
Tax-loss selling
With the recent tumult in financial markets, you may actually have some accrued losses sitting in your non-registered portfolio this year. If so, consider some last-minute tax-loss selling, which involves selling investments with accrued losses at, or close to, year end to offset capital gains realized elsewhere in your portfolio. This Thursday, Dec. 27, is the last trade date in order for your transaction to settle in 2018.
It’s critical that your trade settle in 2018 if you want to use your loss against other capital gains realized this past year, including using it to offset capital gains distributions you may have just received this past week from your non-registered mutual funds.
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