Here are several ways for advisors to be tax-aware year-round.
oSell investments with heavy losses and acquire the same or a similar investment (beware transaction costs, and carefully follow the wash sale rules)
oTake advantage of tax-efficient investments, such as ETFs
oUrge clients to consider market dips as buying opportunities
oPrudently build up clients’ capital loss carry-forwards
oAvoid the year-end rush by harvesting losses throughout the year
oConsider using sector ETFs as a way to take advantage of cyclical dips