Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Trump-ian Tax Planning: A cheat sheet: Clients who are thinking of making tax-saving moves before the end of the year may want to wait to realize short-term gains since the incoming Trump administration intends to cut income tax rates, according to Barron's. Clients who want to realize long-term gains in 2017 should probably do the opposite and act before the new year. The new administration wants to lower the threshold for long-term capital gains taxed at 15 percent from $500,000 to $200,000. -- Barron's
This year is ideal for beaten-stock strategy: Depreciated stocks that are sold by most of their shareholders for tax losses in the final weeks of the year are the ones that are likely to bounce back early next year, according to The Wall Street Journal. Historical data shows that stocks that have experienced the heftiest declines tend to recover the most when tax-loss selling activities wane in January. Identifying losing stocks that are candidates for a tax-loss-related rebound next year could be difficult, and one strategy to find a possible candidate is to enter buy orders on underpriced stocks that are being sold. -- The Wall Street Journal
The most-overlooked tax deductions: State sales taxes, out-of-pocket charitable deductions and student-loan interest deductions are among the many tax breaks that clients qualify for but fail to claim on their returns, according to Kiplinger. Some of the others? Job-hunting costs, work-related moving expenses, and baggage fees. -- Kiplinger
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