This article was written by Darrow advisor Kristin McKenna, CFP® and originally published by Forbes.
No one likes paying taxes…even though a high tax bill can be considered a ‘good problem.’ Investors sometimes go to great lengths trying to reduce or eliminate their tax bill. Although being tax-efficient with your investments and financial decisions is a great way to maximize your wealth, making purely tax-driven choices may be short-sighted. In general, the only ways investors with gains can avoid paying tax is to simultaneously realize enough losses or give away the assets. For charitably inclined investors or individuals looking to make a tax-efficient gift to loved ones, one of these strategies may be right for you.