Fund Fact: Tax-Loss Harvesting

Dec. 16, 2020 6:30 PM ETTesla, Inc. (TSLA), RCL, CCL

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Seeking Alpha Analyst Since 2014

Voted as a Top 100 Marketing & Advertising Leader for 2020 Andrew comes from a background in the Themed Entertainment Industry. After traveling to over 50 countries he has gained an “eye” on the world and is able to approach projects from a diverse perspective. He is the founder of Kingdom Analytics, a company that has served over 300+ organizations who are doing good in the world by helping better connect them to their community, congregation, or customers using advanced demography research. Andrew also founded a virtual tourism company that utilizes aerial photography and 3D scanning to capture immersive video. He has worked for companies that have designed and built everything from “tiny houses” to theme parks. He also has experience in the church world working for the largest high school ministry in the country at North Point Community Church. Andrew previously worked as the Development Manager for Visioneering Studios working on projects with budgets from $60K - $160 million. His focus is in using creative problem solving and data to produce unique and memorable guest experiences.

Summary

Tax-Loss Harvesting Explained.
Wash Sales Explained.

Fund Fact of the Day: Tax-Loss Harvesting... Here is how to save some money on taxes this year. If you are invested in the stock market chances are you have a lot of appreciated stocks with the market up 16% YTD and over 65% from its lows this year. Let's say you are up $1000 in Tesla stock. If you were to sell it you would owe taxes on your profit. However, let's say you were also down $1000 in your Royal Carribian holdings. You could sell your Royal Carribian stock at a $1k loss to offset your $1k earnings from Tesla and owe $0 in taxes. You could then re-buy shares of Tesla and have a new tax basis and you could buy shares of a company similar to Royal Carribian (Carnival?) however, you can not rebuy Royal Carribian if sold for a loss within 30 days, this is what is known as a wash sale. Hope this helps!

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Summary

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