!!!High income earners with large stock grants reduce your #taxes!!!
ATTN: High income earners with large stock grants.
One strategy to reduce your overall taxes ⏬ and avoid concentration risk is tax loss harvesting.
I did a portfolio review with a client who works at a local tech company who wanted help balancing 🧘♂️ his portfolio.
He was in the following position:
1️⃣ Annual income: $250,000
2️⃣ Company stock (from ESPP and grants): $700,000
3️⃣ A “junk drawer” of old 401ks, IRAs: $700,000
4️⃣ Short and long term realized capital gains.
When I looked at his portfolio I noticed he had short term capital losses and long term capital losses in his portfolio.
Unfortunately a lot of his company stock was granted near the company’s all time highs 🎢 . His company then reported less than enthusiastic earnings and took a 10% correction.
By using tax loss harvesting of his unrealized short and long term capital gains we were able to save him $7,000 in income tax and $13,000 in capital gains for the year.
While this is a common practice for high net worth individuals it can apply to anyone to help avoid paying unnecessary taxes 💸
