2024 Tax-loss Selling Calendar: Don’t Miss These Key Dates!

Tax-loss selling involves selling investments that have decreased in value to offset capital gains and reduce your overall tax liability. By observing specific dates related to tax-loss selling, investors can strategically manage their portfolios and optimize tax savings. Here are some key dates to mark on your calendar for tax-loss selling in 2024: 1. January 1, 2024: Starting Date for Harvesting Losses The beginning of the year marks the starting point for tax-loss selling activities for the current tax year. Investors can reassess their investment positions and identify assets that have incurred losses. By leveraging these losses, individuals can offset realized capital gains and reduce their taxable income. 2. October 15, 2024: Deadline for Tax-loss Selling October 15th serves as the deadline for realizing tax losses within the current tax year. Investors must sell the identified assets to lock in the losses and take advantage of the tax benefits. Failing to execute tax-loss selling strategies before this date may result in missed opportunities to optimize tax savings. 3. November 1, 2024: Avoid Wash Sales To adhere to IRS regulations, investors must avoid wash sales when engaging in tax-loss selling. A wash sale occurs when an investor sells a security at a loss and repurchases the same or a substantially identical security within 30 days before or after the sale. To prevent the disallowance of tax benefits, investors should wait at least 31 days before repurchasing the same security. 4. December 31, 2024: Year-End Tax Planning As the year draws to a close, investors should conduct a comprehensive review of their investment portfolio and assess their tax liabilities. By strategically harvesting tax losses before the year-end, individuals can offset capital gains, minimize taxes, and enhance overall investment returns. 5. April 15, 2025: Deadline for Filing Taxes The tax deadline on April 15th offers investors an opportunity to reconcile their tax-loss selling activities and accurately report capital gains and losses on their tax returns. By ensuring accurate and timely reporting, individuals can avoid penalties and maximize their tax savings. In conclusion, marking these key dates on your calendar can help you effectively plan and execute tax-loss selling strategies to minimize tax liabilities and enhance investment outcomes. By staying informed and proactive in managing your investment portfolio, you can leverage tax-loss selling to optimize your financial goals and secure long-term prosperity.