Our weekly roundup of tax-related investment strategies and news your clients may be thinking about.
Harvest your tax losses throughout the year
Clients, like most tax payers, start thinking of tax loss harvesting in December as they make last-minute trades to balance out capital gains with losses for better income-tax outcomes, according to Kiplinger. However, this strategy should come through for clients as needed. In one example, this approach shows how it can deliver in rough-riding markets. — Kiplinger
A strategy for recouping the interest on student student loans
Your client doesn't have to lose when it comes to their student loans, according to the Huffington Post. Those who fast-track their loan payments can use a strategy that essentially recoups their interest payment, thanks to low rates and a $2,500 tax deduction. However, clients may want to first save and make investments before paying off college debt. — The Huffington Post
Tapping your 529 Plan for the first time: Tips for freshman parents
Parents who make 529 plan withdrawals for the first time should be mindful to keep all their tuition-related receipts and other qualified expenses for tax reporting purposes, according to the Motley Fool. Proper documentation ensures they avoid the tax liability that comes for taking the money. — Motley Fool