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Maximize Tax Savings With Strategic Tax-Loss Selling

A specialist studies monitors on the New York Stock Exchange trading floor in New York on November 21, 2024. (AP Photo/Ted Shaffrey, File)

The U.S. market has shown significant growth, gaining over 25% year-to-date through mid-December 2024. Despite this strong performance, there are still opportunities for tax-loss selling in other market segments that have not fared as well.

To engage in tax-loss selling, it is essential to have taxable accounts. This strategy involves selling holdings in your portfolio that are trading below your cost basis, allowing you to offset gains elsewhere and potentially save on taxes.

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