Although periods of market volatility can often create investor anxiety the gains and losses incurred during up and down markets can be leveraged to work together to minimize the taxes investors pay on capital gains Through a practice called “tax loss harvesting” a savvy investor and wealth advisory team can strategically reduce federal tax liabilities without impacting long-term investment plans, When you hold a security in a taxable investment account (eg not an IRA Roth IRA workplace retirement plan or College Savings Plan dividends distributions and sales can be subject to income tax Complicating matters each type of income may be subject to a different tax calculation, Capital gain tax rates, Sales of investments are subject to “capital gains” taxes and tax levels are based on how long you have held the investment Capital gains (or losses are the difference between the sale price of an investment and its purchase price If the investment is sold after being held for less than one year it is considered a “short-term capital gain” If an investment is sold after being held for one year or…, Federal capital gain tax rates, Listed below are the 2024 Federal long-term capital gain tax brackets ¹ Long-term Capital Gains tax rate Single filers (taxable income Married filing jointly 0% $0–$47025 $0–$94050 15% $47026-518900 $94051-583750 20% Over $518900 Over $583750 Many taxpayers are also subject to state income taxes on their capital gains, You can offset taxes on capital gains by capital losses, The IRS allows investors to reduce the amount of capital gains subject to tax by the amount of losses they realize during year These realized losses offset gains on a dollar-for-dollar basis reducing the total tax burden If losses exceed gains for any calendar year up to $3000 can be applied to other income (such as your earned income retirement plan distributions or dividends during the year…, Tax loss harvesting, Although periods of market volatility can often create investor anxiety the losses incurred during down markets provide a unique planning opportunity called “tax loss harvesting” During these “down market” periods investors may be able to sell an investment at a price lower than the purchase price Sale proceeds could then be redeployed to an investment that offers comparable market exposure or a…, Here’s an example, A few months ago an investor purchased $200000 of a mutual fund that invests in large US companies Because of market volatility this holding’s current market value is $180000 This individual had also realized a short-term capital gain of $5000 on a sale earlier this year and she expects to receive $10000 of long-term capital gain distributions from the mutual fund holdings in her taxable…, The “wash sale” rule, It’s important to understand the impact of the “wash sale” rule This IRS rule states that you cannot buy a “substantially identical” security as the investment sold for a loss within 30 days of the sale (either before or after the sale date Investors can employ a few different strategies to comply with the wash sale rule One alternative is to buy a similar (but not identical investment as the…, Published February 2024, Mesirow does not provide tax advice Our Wealth Advisors will work with a clients tax or other professionals , 1  https//wwwmesirowcom/sites/default/files/PDFs/Wealth/2022-Contribution-Limits-webpdf Your wealth advisor can work with your tax professional to be sure that you achieve the desired result Mesirow does not provide legal or tax advice  

Martha Payne is a member of the investor relations and business development team and is responsible for responding to client and consultant requests for information communications and client service She is also a member of Mesirow Private Equity’s Environmental Social and Governance (ESG Committee Prior to joining Mesirow in 2009 Martha was a Client Relationship Management Associate at Calamos…

Matt Donahue is a Managing Director in Public Finance at Mesirow Matt is based in Portland Oregon and works with state and local governments in the pacific northwest to finance crucial infrastructure projects Matt joined Mesirow in 2024 Prior to joining Mesirow Matt worked in the pacific northwest for 14 years and led over 200 government financings as investment banker municipal advisor or…

Matt McCormick is a Managing Director on the Mesirow Capital Formation and Currency Solutions team He is responsible for the marketing and distribution of the firm’s private capital and currency capabilities to institutional investors and investment consultants across North America  Prior to joining Mesirow in 2025 Matt was the Head of Institutional Sales – North America at Alger Management where…

Matt is a Managing Director in Institutional Sales and Trading In this role he is responsible for sales across all fixed income sectors Matt brings over 25 years of experience to Mesirow Prior to joining the firm he held positions in fixed income sales at Vining Sparks Merrill Lynch and Bear Stearns Matt has served as an Associate Board Member for Lake Forest Open Lands a volunteer for Orchard…

Matt Roberts is Managing Director Head of Operations in Mesirow Currency Management He is responsible for all operational processes such as oversight and management of collateral counterparty trade confirmations reports and settlement processes Matt has approximately 20 years of industry experience Prior to joining Mesirow Matt was Head of Operations at The Cambridge Strategy (TCS In 2018 Mesirow…

Matt Coen leads the financial reporting accounting and operations team with primary responsibility for financial reporting Prior to joining Mesirow in 2009 Matt served as a Senior Audit Associate for McGladrey & Pullen LLP  Matt received a Bachelor of Science degree from the University of Illinois at Urbana-Champaign Matt is also a Certified Public Accountant (CPA and serves as a member of…

Matt Ernst is a Vice President in Mesirow Investment Banking He is responsible for supporting senior bankers and clients throughout the transaction process and providing valuation analyses and advisory services for transactions across a wide range of industries These industries include aerospace and defense business services consumer and retail distribution and supply chain food beverage and…

Matthew Olsen is a Managing Director leading the securitized Commercial Real Estate (CRE lending team The team’s primary focus is on Single Asset Single Borrower (SASB securitized CRE loans Commercial Real Estate Collateralized Loan Obligations (CRECLO and Ground Lease Financing (GLF Matthew is also heavily involved in other aspects of the firm’s structured debt offerings including Credit Tenant…