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

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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.

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Essential Things to Consider Before Hiring an Attorney to File a Medical and Health Damage Lawsuit

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Health Damage Lawsuit

It can be very stressful and confusing when you suffer a severe injury or illness due to someone else’s negligence. In addition, you’re likely dealing with medical bills, lost wages, and other expenses while trying to get back on your feet. That’s why hiring an attorney is so essential. The right lawyer can help you recover the compensation you need to cover those costly expenses. But before hiring an attorney for your health damage lawsuit, here are some essential things you should look for:

Specialization of Attorney

When looking for an attorney, you should check that they specialize in law. They should also have experience handling medical-related cases and be able to provide references from previous clients. If possible, ask them to explain any prior case they took so that you can get an idea of what type of lawyer you’re dealing with.

Next, look for an attorney who deals with court systems. It is common for people who do not understand how the system works to lose their case. It is primarily due to a failure on their part to understand the facts and circumstances surrounding a particular situation. It will help ensure your case has better chances of success since you’ll have someone who understands all aspects when presenting it. Someone who knows what must be done at every stage of litigation. Also, who understands how each side needs evidence within legal bounds and managing witnesses’ rights under the American law system.

Discuss Similar Medical Lawsuits With the Attorney

Make sure that the attorney has experience with similar medical-related lawsuits and cases. An excellent way to find out is by asking them if they have previously handled cases like yours. Also, understand what results from those cases were yielded. Consider the araquat Parkinsons Lawsuit, which can be filed if a person has been diagnosed with Parkinson’s disease immediately after using paraquat (a herbicide). So if your case is similar to this particular medical lawsuit, then you want to know if they have handled cases that resulted in such trials. If their answer is yes, you should ask them how many and how much time it took them to get there.

The goal here is to ensure you are getting an attorney who knows what he/she is doing. So, if your case goes into the litigation phase, they would be well experienced in handling medical negligence.

Experience and Reputation

It is essential to check for the experience and reputation of the attorney you are about to hire. If you have a lawsuit involving complicated legal matters, only an experienced lawyer is well versed in handling similar cases. If your case involves medical malpractice, you will want to find out how many years of experience the attorney has in such instances.

You should also ask yourself whether or not this person can handle my case if I need one? Would they know what steps must be taken at each stage? Will they be able to communicate clearly with me, so I know what’s happening at all times? You might want someone who specializes in these cases because they may have connections within the community or industry. It can help get things done faster than other lawyers would.

License and Qualifications

To be eligible for a medical malpractice lawsuit, you need an experienced attorney licensed in your state. The best way to do this is by looking at their website to check the listing of all qualifications.

A lawyer licensed in your state will most likely be able to help you win your case. Again, they are familiar with the state’s laws and regulations regarding medical malpractice cases.

The next thing you should look for when choosing an attorney is whether or not they are a member of the American Bar Association (ABA). Members of ABA have passed an exam testing their knowledge of law and ethics. As a result, they will know precisely how much experience they need before taking on any new case. The ABA also offers seminars on different topics related to law practices so that attorneys can keep up with all changes within the field.

Fees of the Attorney

When hiring an attorney, you should also consider the attorney’s fees.

How much does the attorney charge per hour?

An experienced lawyer charges anywhere from $200 to $400 per hour for their services. If you have a fundamental question about your medical malpractice case, expect to pay about $250-$300 for this kind of work. However, if you need your lawyer’s assistance in preparing complex litigation documents such as expert reports and depositions, expect to pay more than $500 per hour. Some attorneys may charge additional fees if they employ paralegals who work on your case.

How much does the attorney charge for filing fees?

Many attorneys offer “flat rate” filing packages, including all necessary court fees for filing a lawsuit. Typically, these flat rate packages cost between $1,000 and $3,000, depending on your case’s complexity. However, in some cases, exceptional circumstances could result in additional legal costs being charged by specific experts. As a result, it would make it difficult for some people without sufficient means to afford representation.

Communication Skills

It is crucial to check the communication skills of a lawyer. You can do it by asking questions and observing the way they respond. The more you talk, the better it is for you to understand how well your attorney listens to and understands your concerns.

If your attorney does not provide answers to all of your questions, then it is probably time for him to move on from this case. However, consider looking elsewhere if he makes excuses or asks for an extension to answer. It is not acceptable behavior from anyone who claims they have all their cards on the table at all times.

It’s also vital that an attorney communicates with his clients promptly. Hence, there are no delays in getting things done in the court or with other action-related tools like subpoenas. These items might require immediate action. It implies that if someone doesn’t respond quickly enough when necessary, we might be in trouble again.

Reviews and Testimonials

When looking for an attorney, it’s good to check the reviews and testimonials left by clients who have hired them in the past. You can find these on the attorney’s website and social media pages and their Google and Yelp profiles.

Google reviews are critical because they appear first in search results when someone Googles an attorney’s name. So this is where many people will be looking when trying to decide whether or not they want to hire an attorney. It is also essential that your potential attorney has excellent ratings on Yelp because this platform has a lot of traffic as well.

Research Before Hiring

Researching the details to consider when hiring an attorney for filing a medical lawsuit is vital. You should choose one with the necessary experience, reputation, and good communication skills. It will help you to get the best results in your case.

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5 highlights you should consider having a DUI lawyer

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5 highlights you should consider having a DUI lawyer

Every state has its governing laws relating to impaired driving. For instance, in the united states, drivers above 21years are not allowed to drive with a blood alcohol content of 0.08 percent or above. This is unlawful according to state laws. Therefore, you need to get a professional and experienced lawyer such as Allan Pearce when accused of breaking the impaired driving laws. Hiring a DUI lawyer offers several highlights.

Here are some benefits of hiring a Dui lawyer

  1. They will help you retrieve your license

One of the initial advantages of employing these specialists is that they will battle for your certification and, in most cases, will be successful. You might not be able to reclaim your license on your own. However, with the appropriate DUI lawyer on your side, your chances of being able to drive again are greatly increased, and you might be back on the road in no time. This is critical since your ability to drive a car is likely essential to many elements of your life.

  1. They may minimize your sentence.

The punishments imposed on DUI convictions vary greatly from one instance to the next, and they might range from light to severe repercussions. If you are a first-time offender, you may be eligible for a relatively compassionate punishment, but if you are a repeat offender, you may face more harsh penalties. Do not undervalue the gravity of these incidents; doing so will only result in you receiving a harsher sentence. However, if you choose to work with the best lawyer, you will have a far better chance of having your sentence lowered, and your fines decreased. Of course, your unique circumstances will determine the exact sentence, but the attorneys you employ will work tirelessly to lessen it. These pros may even be able to assist you in getting your case completely dismissed, which is an undeniable benefit. As you can see, working with these professionals has a lot of benefits.

  1. Saves you money

These lawsuits may be quite expensive, which is not to your advantage. While it may seem strange, hiring a DUI lawyer might save you money in the long run. They will understand exactly when and how to argue the evidence in court, saving you money and time. Working with such pros still has another significant advantage.

  1. They Will Assist You In Spending Less Time In Court

These specialists will not only lead to significant savings but also help you spend less time in the courts. After all, you have a life beyond the courtroom and apart from your DUI case, but that life cannot be put on hold just because you made a single blunder for which you must now pay the price. DUI lawyers are well aware of this, which is why they will do all possible to assist you to avoid spending too much time in court.

  1. They are knowledgeable in areas where you are lacking.

If I were to summarize everything and give you one reason to employ a DUI lawyer, it would be this. DUI attorneys are knowledgeable and experienced in such cases. Therefore they will ensure to give the best of their knowledge to ensure you do not go to jail and also retrieve your license.

In conclusion, hiring an attorney has numerous advantages. The above listed are some of them. When accused of breaking impaired driving laws consulting with a lawyer is the best idea.

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Top Qualities of a Good DUI Attorney

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Top Qualities of a Good DUI Attorney

If you are facing any DUI convictions, you will have to hire an experienced lawyer knowledgeable about matters related to DUI cases. DUI convictions cause numerous implications. For this reason, getting a highly competent lawyer should be on top of your list.

You will need to find a good lawyer from a reputable law firm like the Saskatoon DUI, competent and experienced, to get outstanding representation in court. If you want to know some of the essential qualities to look for in an attorney when facing DUI charges, keep reading.

Communication Skills

Good communication skills are essential to look out for a while looking for an attorney to represent you in your DUI case. Your attorney should also have good listening skills to comprehend complicated situations and witness statements because they require detailed responses. A good lawyer should be able to handle people well and know what should be said and when it should be said. The overall success of the case is highly dependent on good communication skills.

Transparency

You’ll want to know the possible outcome of the case when you talk to your DUI lawyer. Suppose an attorney isn’t transparent with the details regarding your case. In that case, reconsider getting a lawyer who’ll be very open with you and tell you everything regarding your case. Reasonable attorneys should always portray transparency to their clients when dealing with any issue.

It is crucial to clearly understand your case’s possible outcome, even if a better result than expected arises after negotiations. It is better to prepare yourself for the worse than to expect positive results and disappointment after being charged with a harsh penalty.

Good Reputation

Your case is likely to have a positive outcome if you are dealing with a highly reputable lawyer who is experienced. An attorney knowledgeable in matters related to DUI laws and good work ethics is a good choice. You will also have to check their records to see how many cases they have successfully handled. Look for another lawyer if you are unsure about their credibility.

An Excellent Ethical Track Record

A judge will recognize reputable representation when you get a highly respected lawyer to represent you in court. The records of disciplinary actions of a lawyer are accessible to the public to access, making it easy for one to check the lawyer’s background.

Proper Research Skills

Your lawyer should immediately be able to assess more information at once. In some situations, the lawyer knows they will have to conduct extensive research on certain aspects of your case. Working with a lawyer who knows when to conduct a proper analysis to confirm your case’s details is essential. This aspect is a key strategy that comes in handy in building strong arguments—experienced lawyers research cases without spending too much time on details that will not assist the case.

Conclusion

DUI cases are only good as the lawyers who represent them, so ensure you get an attorney who will represent you well. Look out for the above qualities while choosing your DUI attorney to guarantee your success in getting a good lawyer. Don’t forget that drinking and driving is NEVER a good choice!

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