Short-term And Long-term Gains Harvesting

Everybody agrees that long-term gains are almost always preferable to short-term gains. I tend to agree in general. But there are exceptions too for example if you are a retired person like me :). Long term capital gains taxes are lower than the short-term counterparts. For example, short-term capital gains tax on equity is 15% vs 10% on long-term gains. Likewise, debt short-term capital gains are taxed at your applicable tax rate as opposed to 20% on indexed long-term capital gains. And here is your exception if you read carefully. What if your applicable tax rate is less than 20%? … Continue reading “Short-term And Long-term Gains Harvesting”

Consolidating Your Portfolio

I am sure everyone of you at some point have wondered why you have so many funds in your portfolio. I am one of them too. If you have wanted to consolidate your funds into fewer funds in fewer categories, this post should help you get there. There could be many reasons for your bloated portfolio. May be some funds performed better at some point but not anymore and so you stopped investing in it and started another one. Or perhaps you created multiple folios in the same fund by mistake because you did not select a folio number. May … Continue reading “Consolidating Your Portfolio”

Income Tax Reporting

While the name “income tax reporting” seems to suggest that you only need to report income, it is not really the case. It has been expanded to report investments that you already have, whether they gave you any income or not during the assessment year. After reading a comment on one of my blog posts I became aware of the fact that some people might be misinformed about what is supposed to be reported. Since I am not a tax adviser, I cannot tell what everyone should report, but I will go over what I have been reporting over the … Continue reading “Income Tax Reporting”