Alpha Architect (Factors and Taxes)

Written By Nomad FI

https://alphaarchitect.com/2024/08/factors-and-taxes/

Utilizing a few tax strategies (from Alpha Architect article)

  • Use tax-lot accounting (HIFO) and sell the high-cost shares first to minimize taxable gains.

  • Defer the realization of gains by avoiding the sale of appreciated assets to delay gains.

  • Harvest losses by taking capital losses to offset taxable gains

Additional Notes:

  • The market has been trending upside last fiscal and we utilized our realized capital gains to pay off our mortgage. We’ve harvested our losses since Covid, and as of to-date, we have fully exhausted KFI-BInvT. We still have about 15K of CFCL in EFI. Effective this year, we will be limiting our volatility trades and refocus on building up our DFC equities.

Nomad FI
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