Tax harvesting: do it early, do it often, do it now

记住这个wash sale 也涉及非交税账户，所以看清楚再卖。

我现在尽量把两个系统的个股不相交。这样不用惦记。Wash sale 本身没什么大事。

【AI 说】

For large hedge funds, tax-loss harvesting is a continuous, year-round process rather than a single event at the end of the year. With large, actively managed portfolios, hedge funds use systematic, automated strategies to harvest losses whenever market volatility creates an opportunity.

Year-round strategy

Instead of waiting for a tax-loss season, large hedge funds use technology to monitor for harvesting opportunities daily. This continuous approach allows them to capture losses more effectively than waiting for a month-end, quarter-end, or year-end review. A continuous strategy allows them to:

• Take advantage of volatility:Market drops, such as the volatility at the start of the COVID-19 pandemic or in 2022, are seen as prime times to harvest losses.
• Outperform less active strategies:Studies show that a daily, trigger-based approach provides more potential tax savings than a less frequent, calendar-based approach.

End-of-year activity for other investors

For many individual investors and smaller firms, tax-loss harvesting is still a year-end practice, typically done in November and December. By the end of the year, investors have a clearer picture of their portfolios performance and tax liability. However, this is when many other investors are also selling, which can lead to depressed prices.

Important considerations

No matter when tax-loss harvesting occurs, all investors must abide by these rules:

• Wash-sale rule:You cannot claim a tax loss if you buy a substantially identical security within 30 days before or after selling the security at a loss. Hedge funds navigate this rule by reinvesting proceeds into a similar but not identical asset, such as an ETF tracking the same sector but a different index.
• End-of-year deadline:To count for a specific tax year, all sales transactions must be completed and settled by December 31st. Trades should be executed well in advance of the deadline, as settlement times can vary.