Tax Loss Selling Infographic
When equity markets dip, it’s the perfect time to review portfolios and explore tax-loss selling before the year ends.
The Tax Loss Selling infographic offers a clear, client-friendly visual explaining how realizing capital losses in taxable investment accounts can help offset capital gains, reducing taxes owed and creating potential savings.
Who Might Consider Tax Loss Selling
- Investors with little or no capital gains in the current year looking to use realized losses strategically
- Investors (or their spouses) with capital gains in the past three years
- Those seeking to optimize taxes without changing long-term investment goals
“This infographic outlines how the strategy works, its benefits, carry-forward and carry-back rules, and eligible investments.”
Key Considerations
Superficial Loss Rule
Be mindful of the superficial loss rule: if you sell an investment at a loss and repurchase the same or an identical property within 30 days, the capital loss is denied and added to the cost base of the repurchasing party. This rule is designed to prevent short-term tax manipulation.
Investment-Driven Decisions
Tax-loss selling should balance short-term tax savings with long-term portfolio objectives. Even if an asset has declined in value, it may still be a suitable investment for a client’s goals.
Snackable. Stackable. Adaptable.
Use the infographic as a quick, engaging visual to start conversations about tax planning, or stack it with other FreshPlan tools to illustrate the real-world impact of tax-loss selling scenarios.
With FreshPlan, advisors can deliver more advice to more clients — efficiently and effectively.
