PT  - JOURNAL ARTICLE
AU  - Edward N.W. Aw
AU  - Sanjun Chen
AU  - Christopher R. Dornick
AU  - John Q. Jiang
TI  - The Art of Losing in Investing: <em>Harvesting Tax Losses for a Positive Impact</em>
AID  - 10.3905/jwm.2018.21.1.018
DP  - 2018 Apr 30
TA  - The Journal of Wealth Management
PG  - 18--26
VI  - 21
IP  - 1
4099  - https://pm-research.com/content/21/1/18.short
4100  - https://pm-research.com/content/21/1/18.full
AB  - Paying taxes is universally disliked. Tax-loss harvesting strategies help offset the capital gains tax investors incur. Tax-loss harvesting involves selling stocks that have returned negative over a recent time period. These recognized losses can offset investment gains and therefore lower the investor’s capital gains tax bill. The authors argue that tax-loss harvesting strategies are smart beta momentum strategies in disguise. They also argue that just as momentum strategies are managed year-round, tax-loss harvesting strategies should be too, not just in December.TOPICS: Wealth management, legal/regulatory/public policy