It's Time to Harvest - part 2Submitted by Prosperity Advisory Group on November 17th, 2018
by Joel Morrison
You may have read Sara’s article from November 3rd about tax loss harvesting. There is something else to be aware of, if you own mutual funds in an account where gains and losses will have tax consequences.
Mutual funds may also pay out capital gains distributions that they realized in their own internal buying and selling of securities, even if you have done nothing but hold the mutual fund over the entire year. So even you took no actions personally, the fund you own may generate gains that you need to be cognizant of.
By now, most mutual funds have put out their best estimations of 2018 capital gain distributions, which usually happen in November and December. If one that you own is predicting a large distribution, you may want to consider sidestepping that by selling or exchanging out of that fund, especially if doing so would have little tax effect, or you could even harvest a loss.
If you have questions about this, contact Prosperity Advisory Group and talk to one of our advisors.
*This piece is designed to provide accurate and authoritative information on the subjects covered. It is not, however, intended to provide specific legal, tax, or other professional advice. For specific professional assistance, the services of an appropriate professional should be sought.