NU Online News Service, Nov. 26, 2:43 p.m. – The Money Management Institute, Washington, has published a report on tax strategies that top sales and marketing directors can “weave into the education of sales reps in the field who deal directly with clients,” says Executive Director Christopher Davis.
This year many investors suffered losses, some of which they can recoup on their 2002 tax returns.
But “they’ll need a strategy for using losses to reduce their overall tax liabilities,” according to the tax relief report. “Their ability to do this–without incurring sizable transaction costs or disrupting their long-term investment plans–will depend on their choice of investment vehicles, and their understanding of the portfolio management process.”
Because federal tax laws allow investors to use capital losses to shelter taxable gains, 2002 ought to be a great tax year for many. After all, the S&P 500 lost 28% of its value in the first nine months.
“Unfortunately,” MMI says, “many investors may find it’s too late to develop an effective 2002 tax plan. Investment decisions they made earlier ?have made it harder for them to reduce their tax liabilities now.”