Connect with us

Law

What Is Tax-Loss Harvesting?: A Beginner’s Guide

Published

on

Tax time is here again, and with it, the sinking feeling in your stomach that comes with determining how much you might owe the federal government.

Americans have many conflicted feelings about paying their taxes, but there is no denying that working through all the paperwork each year can produce quite a headache.

While it’s never fun to reflect on your financial losses, doing so can actually be quite helpful during this busy time. Investment losses can be used in a process known as tax-loss harvesting. It is a financially savvy way to help lower your tax burden and cool some of the sting of your financial loss over the course of the year.

How does tax-loss harvesting work and is it something you should consider this year? Read on and we’ll walk you through what you need to know.

What Is Tax-Loss Harvesting?

Looking for a way to lower your tax bill? There’s no better way than tax-loss harvesting, which can help to shave off up to $3,000 from what you owe each year. That’s certainly not a total to turn your nose at.

The process essentially requires you to cut your tax bill by selling current investments at a loss. Have a few stocks that haven’t paid off or other kinds of investments that have taken a dent in your financial outlook?

Selling them at their current lows could actually help to put some money back into your pocket instead of the federal government’s. When you sell low, these losses can be used to offset the capital gains tax that you might be taking in from other kinds of investments.

Making the conscious decision to sell at a loss, while it may sound counter-intuitive, might actually help you save money in the short term.

Why Consider Tax-Loss Harvesting?

There are many benefits and reasons to consider tax-loss harvesting. The main benefit, as we mentioned above, is to help lower the amount you’ll actually owe in taxes for your more lucrative investments.

One advantage of tax-loss harvesting as a financial strategy? You don’t have to be a high roller to take advantage. Any kind of portfolio with gains and losses can implement this strategy, even if the total value of your investments is relatively small.

While a small amount might not be worth making the sale for, the principles of the strategy stay true no matter what financial bracket you’re in.

While it makes sense to think about the money saved as going to diminishing your capital gains tax, this isn’t the only area where you can save money. Even if you didn’t make any cash on your investments this year, you can actually use your harvested losses to deduct from what you owe on your general income tax.

Tax-loss harvesting isn’t an official financial move recognized by the IRS, but it’s perfectly legal to do. Many financial advisors might recommend you take on this strategy during tax time. You can read more about the benefits of this move at https://bogartwealth.com/services/tax-optimization/.

Factors to Keep in Mind

If you’re strongly considering selling off some investment losses, there are a number of things you’ll need to keep in mind. While this is a smart financial strategy, it is also to make a mistake if you don’t know what you’re doing.

The major thing you’ll want to keep your eye on: it’s already too late to do it for this calendar year. In order to count for your taxes, the sale that you’re looking to do needs to occur prior to December 31st.

There are some tax tasks that can be done all the way up to the tax deadline, but this is not one of them. If you want to take advantage of tax-loss harvesting, it needs to be done prior to the end of the calendar year.

You can start keeping your eye on your taxes for this upcoming year as your investments move, but it is too late to make changes for the 2021 tax year.

What else do you need to keep in mind?

A Warning for Those in Lower Tax Brackets

You need to remember that while this strategy will work for people in lower tax brackets, you’ll need to consider if it is worth the money saved. Investments that you have at a loss now might come back up in the future.

The potential profit from these investments might be more than what you’re able to save on your taxes through this strategy.

The lower your tax bracket, the fewer savings you’ll make going this route. If you calculate how much you might be able to save and find that you have a highlier likelihood of making that money by waiting for your investments out, that might end up being the better choice.

Harder for Index Fund Investors

If you make most of your investments in index funds as opposed to individual stocks, this is going to be a trickier move to make. It’s less easy to sell off your stake in these types of funds when you need to save some cash at the end of the year.

You’ll find it much easier to sell off a few individual stocks and keep your funds on hold for the future.

Benefits of Tax-Loss Harvesting

If you’re looking for a way to save on your taxes this season, learning about tax-loss harvesting might provide just what you’re looking for. There are many reasons to consider this particular financial strategy, with the most important ones outlined above.

Need more personal finance advice? Keep scrolling our blog for more.

Continue Reading

Law

Exploring the New Age of Digital Law for Barristers

Published

on

Exploring the New Age of Digital Law for Barristers

Legal technology advancements are significantly transforming the way barristers work, creating brand-new opportunities for legal professionals while reshaping traditional practices.

Barrister Emily Windsor shares her insights into how these innovations are influencing the legal landscape, from streamlining case management to enhancing research capabilities.

She also explains why adapting to these technological changes is crucial for modern practitioners who want to remain efficient, competitive, and prepared for the future of legal practice.

Efficiency, Accessibility, and Transformation

Emily Windsor understands the importance of digitisation in democratising legal knowledge and creating a more flexible legal profession.

Reflecting on her role in producing and updating leading agricultural law texts, she acknowledges the impact of moving legal resources online: “Since books have been incorporated into digital platforms, practitioners who would not have dreamt of purchasing a specialist text can now access them at the click of a button,” she notes.

Platforms like the Westlaw online legal database have effectively removed barriers to information, ensuring that specialised legal expertise is widely available to those who need it.

The influence of technology in the legal sphere extends past knowledge dissemination, fundamentally altering advocacy through the accelerated digitalisation of court processes, especially during COVID-19.

Though Emily Windsor is aware of the constraints of remote hearings, particularly in assessing witness demeanor, she also sees the benefits of technological flexibility for lawyers and clients alike.

Furthermore, technology has introduced new possibilities for practitioners to balance professional demands with personal responsibilities. Emily Windsor points out how online access to legal resources and virtual proceedings has made the Bar more accessible, particularly for women and individuals managing family commitments.

The modern barrister must embrace technological tools not only as a matter of convenience but as a means to remain efficient and accessible.

Remote Hearings

The pandemic accelerated the adoption of remote hearings, transforming them from an occasional convenience to a standard practice. Emily Windsor’s observations reinforce how this shift has had lasting effects on the profession. Virtual hearings for procedural matters save time and resources that would otherwise be spent on travel and waiting at court.

This transition to remote proceedings has particular benefits for certain types of legal work. Administrative hearings, case management, and applications without witness testimony can often be handled more efficiently through virtual means. The technology allows barristers to serve more clients in less time, potentially reducing costs for clients while increasing access to legal services.

Work-Life Balance and Diversity

Perhaps one of the most significant impacts of legal technology has been its effect on work-life balance within the profession. Emily Windsor notes that technology has made the Bar more accessible to those with family commitments, particularly women. The ability to access resources remotely and participate in hearings from home or office locations provides flexibility that was previously unavailable.

This technological shift may help address long-standing diversity issues within the legal profession, since by removing some of the rigid structural barriers that have historically made it difficult for certain groups to succeed at the Bar, technology creates pathways for a more diverse and representative legal profession.

Continue Reading

Law

The Evolution of Automotive Tools: Transforming the Mechanic’s Workshop

Published

on

The Evolution of Automotive Tools

“Safety should always be the top priority when it comes to driving,” emphasizes Andrew S. Kryder, Esq., a leading Chicago car accident lawyer. Addressing the evolution of automotive tools, he notes that advancements in technology have significantly transformed the mechanic’s workshop, enhancing efficiency and safety for both drivers and technicians. From diagnostic scanners and digital torque wrenches to advanced tire balancing machines, modern tools offer precision and speed unprecedented in the industry. These innovations not only streamline the repair process but also contribute to ensuring that vehicles are in optimal condition, thus promoting safer roadways for everyone.

Advanced Diagnostic Tools

Gone are the days when mechanics had to physically inspect every part of a vehicle to identify issues. With advanced diagnostic tools, technicians can now quickly and accurately diagnose problems, saving time and reducing human error. These tools use computer systems and sensors to scan a vehicle’s performance, detect abnormalities, and provide data for efficient repairs.

Precision Torque Wrenches

Torque wrenches have been crucial in automotive repair for decades, but today’s digital torque wrenches offer enhanced precision and accuracy. These tools allow technicians to calibrate the amount of pressure applied when tightening bolts, ensuring that they are tightened to the exact specifications recommended by manufacturers. This not only improves the quality of repairs but also prevents potential hazards caused by over or under-tightening bolts.

Advanced Tire Balancing Machines

Tires are a critical component of safe driving, and maintaining them in optimal condition is crucial for road safety. With advanced tire balancing machines, technicians can accurately balance tires to ensure even weight distribution and prevent issues like uneven wear or vibrations while driving. This not only promotes a smoother ride but also minimizes the risk of accidents caused by tire failures.

Improved Safety Measures

In addition to advanced tools for repair and maintenance, advancements in technology have also led to improved safety measures in the mechanic’s workshop. For example, some equipment now comes with safety features like automatic shut-off switches to prevent accidents, while others have ergonomic designs to reduce strain on the technician’s body.

That Means …

The evolution of automotive tools has significantly transformed the mechanic’s workshop, improving efficiency and safety for both drivers and technicians. With these advancements, we can expect even more precise and efficient repairs in the future, contributing to safer roads for all.

Continue Reading

Law

Climate Change and Its Economic Consequences – Kavan Choksi

Published

on

Kavan Choksi

Climate change poses significant challenges to the global economy, affecting everything from agriculture and infrastructure to labor markets and financial systems. Rising temperatures, unpredictable weather patterns, and natural disasters disrupt supply chains, reduce agricultural yields, and damage infrastructure, leading to increased costs for businesses and governments alike. In many regions, frequent extreme weather events—such as hurricanes, floods, and wildfires—result in significant financial losses. For developing countries, which are often more vulnerable to environmental shifts, the economic toll can be particularly devastating. Here we see the thoughts of people like Kavan Choksi.

Impact on Industries

Certain industries are particularly vulnerable to the economic effects of climate change. Agriculture is one of the most affected sectors, as changing weather patterns and extreme temperatures can lead to lower crop yields and higher production costs. For instance, prolonged droughts or floods can destroy entire harvests, leading to food shortages and price spikes. This can have cascading effects on both local and global markets, as shortages in one part of the world can lead to price hikes and food insecurity in other regions.

The insurance industry is also heavily impacted, as the frequency and severity of natural disasters increase the number of claims. Insurers are often forced to raise premiums, making coverage more expensive for consumers and businesses, or, in extreme cases, to withdraw from high-risk markets altogether. The energy sector, particularly fossil fuel-based industries, faces regulatory and market risks as the world shifts toward renewable energy in an effort to combat climate change.

Financial Markets and Global Investment

Climate change also has significant implications for financial markets. As businesses and governments respond to climate risks, investment patterns are shifting. Companies involved in fossil fuels are facing declining valuations, while those in renewable energy and sustainable technologies are seeing a surge in investment. Global efforts to reduce carbon emissions have led to the development of new financial instruments, such as green bonds, which allow investors to support environmentally friendly projects.

However, the transition to a low-carbon economy comes with economic costs, particularly for countries heavily reliant on fossil fuels. These nations may experience job losses in sectors like coal, oil, and natural gas, leading to economic instability in regions that depend on these industries.

Social and Labor Market Effects

The economic consequences of climate change extend beyond industries and financial markets to the labor force. Rising temperatures and extreme weather can affect worker productivity, especially in sectors that rely on outdoor labor, such as construction, agriculture, and tourism. As temperatures increase, workers may face health risks and fatigue, leading to decreased productivity and higher absenteeism. This can result in lower economic output and increased healthcare costs.

Moreover, as regions experience more frequent natural disasters, migration patterns may shift, with populations moving from areas affected by climate change to safer locations. This mass movement of people, often referred to as climate migration, can put additional strain on urban centers and lead to competition for resources, housing, and jobs.

Global Inequality and Climate Justice

One of the most significant challenges related to climate change is its disproportionate impact on low-income and developing countries. These regions often lack the financial resources and infrastructure to adapt to climate-related challenges, making them more vulnerable to economic disruptions. For example, small island nations are particularly at risk due to rising sea levels, while many African countries face the threat of desertification and declining agricultural productivity.

Climate change also exacerbates global inequality, as wealthier countries can invest in adaptation and mitigation strategies, such as flood defenses or renewable energy infrastructure, while poorer nations struggle to cope with the consequences. This has led to calls for climate justice, where developed nations that have historically contributed the most to global carbon emissions take greater responsibility for addressing the impacts on vulnerable populations.

Government and Corporate Responses

In response to the growing economic risks of climate change, governments and corporations are taking action. Government policies, such as carbon pricing, emissions trading systems, and subsidies for renewable energy, aim to reduce greenhouse gas emissions and promote sustainable practices. These policies are crucial for transitioning to a low-carbon economy and mitigating long-term economic damage.

Corporations, too, are increasingly incorporating climate risks into their business strategies. Many large companies are committing to net-zero emissions targets and investing in sustainable technologies to reduce their carbon footprints. This shift not only helps businesses meet regulatory requirements but also makes them more attractive to environmentally conscious consumers and investors.

Conclusion

The economic consequences of climate change are vast and far-reaching, affecting industries, financial markets, and labor forces across the globe. While some sectors, like renewable energy, stand to benefit from the transition to a low-carbon economy, others will face significant challenges. Developing countries, in particular, are vulnerable to the effects of climate change, highlighting the need for global cooperation and climate justice initiatives. Governments, corporations, and individuals must continue to adapt and innovate to mitigate the economic impacts of climate change and ensure a sustainable future for the global economy.

Continue Reading

Title

How Headless CMS is Powering AI-Generated Content and Automation How Headless CMS is Powering AI-Generated Content and Automation
Tech2 days ago

How Headless CMS is Powering AI-Generated Content and Automation

The emergence of AI is transforming content generation and management, empowering companies to create tailored, high-quality content in record time...

Mastering Online Slots Mastering Online Slots
Sports3 days ago

Mastering Online Slots: A Guide for Myanmar Players

Online casinos have revolutionized the gambling experience, making it possible for players in Myanmar to enjoy their favorite games right...

Exploring the New Age of Digital Law for Barristers Exploring the New Age of Digital Law for Barristers
Law7 days ago

Exploring the New Age of Digital Law for Barristers

Legal technology advancements are significantly transforming the way barristers work, creating brand-new opportunities for legal professionals while reshaping traditional practices....

Free Slots 777 That Let You Experience Old-School Fun Free Slots 777 That Let You Experience Old-School Fun
Games3 weeks ago

Free Slots 777 That Let You Experience Old-School Fun

Have you ever missed the classic slot machines with spinning reels and simple yet exciting gameplay? Free Slots 777 bring...

Why You Need A Plastic Welding Kit Why You Need A Plastic Welding Kit
Viral4 weeks ago

Why You Need A Plastic Welding Kit

Plastic welding kits are a must-have for plastic fabrication, repair, and modification. Whether you work in the plastic industry or...

3 Places to Experience a Unique Culinary Journey in Madrid 3 Places to Experience a Unique Culinary Journey in Madrid
Life Style4 weeks ago

3 Places to Experience a Unique Culinary Journey in Madrid

Spain’s capital is a melting pot of flavors, and now, food lovers have the chance to embark on a one-of-a-kind...

Smart Labeling Smart Labeling
Business1 month ago

Smart Labeling: How Direct Thermal Labels and Thermal Label Stickers Improve Efficiency

In a world where organization and efficiency are key, the right labeling solution can make all the difference. Whether you’re...

The Ultimate Guide to Eric Emanuel and His Iconic Shorts The Ultimate Guide to Eric Emanuel and His Iconic Shorts
Fashion1 month ago

The Ultimate Guide to Eric Emanuel and His Iconic Shorts

Introduction to Eric Emanuel Eric Emanuel is a well-known fashion designer who has changed the way people see streetwear. His...

Why Can-Am X3 Doors and Windows Make a Huge Difference in Your Ride Why Can-Am X3 Doors and Windows Make a Huge Difference in Your Ride
Autos1 month ago

Why Can-Am X3 Doors and Windows Make a Huge Difference in Your Ride

If you own a Can-Am Maverick X3, you know it’s built for adventure. Whether you’re flying through the desert, climbing...

Choosing the Right 100W Solar Panel for Your Energy Needs Choosing the Right 100W Solar Panel for Your Energy Needs
Tech1 month ago

Choosing the Right 100W Solar Panel for Your Energy Needs

Solar energy continues to revolutionize the way people power their homes, vehicles, and outdoor adventures. A 100-watt solar panel is an...

Categories

Title

Trending