Unpacks the basics—and the big misses—of capital gains planning.

Quick Tax Tip
With Art Werner
CPE Today

Many accounting professionals may recall the concept of tax loss harvesting from their very first income tax course. But this seemingly elementary strategy can have powerful implications—and far too many practitioners and clients are overlooking it.

• Click here for more Art Werner

“Each year, clients walk into offices with their 1099s in hand, showing large capital gains,” Werner explains. “At that point, there’s not much we can do except report what’s already happened. That’s the role of a historian, not an advisor.”

The real value, Werner says, comes from being involved before the end of the tax year. Had clients reached out when those gains occurred, professionals could have explored ways to offset them—namely, by strategically selling loss-generating assets before December 31.

Is there a way to do so while the asset remains in the client's portfolio?

Yes, but things get tricky with crypto.