As the end of the year approaches it's time to review your investment portfolios for potential tax savings strategies. Investors holding mutual funds should investigate any potential capital gain distributions that might show up by year end. Review your holdings for losses that could help offset capital gain distributions or gains from sales earlier in the year. Likewise, if you are buying a mutual fund, don't "buy the capital gain"! If one is to be paid by year end and you buy now, you get the income on your Form 1099 for the year and get to pay tax even if you didn't get the benefits of the gains.
Clients of IAP can ignore these warnings, as this planning is part of our ongoing services for you.
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