Don’t get “spooked” by a surprise tax bill: capital gain distributions during a market downturn—and how to plan accordingly

Welcome to this episode of 20/20 Money! On today’s show we discuss the relationship between tax loss- and gain-harvesting and capital gain distributions from ETFs and mutual funds. We’ll run through a couple of examples of how you can proactively review your portfolio and potentially reduce your tax liability and not be surprised by a large 1099-DIV report during 2023’s tax season.

 

Resources:

What is the “wash sale” rule?

Fidelity’s Tax Loss Harvesting article

20/20 Money Community Information

 

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