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Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Rebalancing client portfolios can trigger tax bills
Rebalancing is not a taxable event if it is done inside a tax-deferred retirement account, such as 401(k) and IRA, according to this article from The Los Angeles Times. However, clients can expect tax consequences if they rebalance their regular brokerage account. Investments held more than a year will be subject to lower capital gains tax rates, while investments sold in less than a year will be taxed at higher regular income rates, according to an expert. “Tax experts often recommend selling some losers to offset winners' gains, and robo advisor services that invest according to computer algorithms may offer automated...