Wall Street finds a tax silver lining in down market
Wall Street banks have found a silver lining in this year’s market rout: making money by helping wealthy clients sell some investments at a loss to lighten their tax bills.
This so-called “tax-loss harvesting” strategy has been around nearly as long as the federal tax code — which came into force in the second decade of the 20th century — but has surged in popularity this year as stocks and bond prices have plunged.
JPMorgan Chase last week launched a new “tax-smart” platform focused on tax-loss harvesting, joining financial groups like Morgan Stanley and BlackRock in offering automated products that help investors benefit from the strategy.
This story originally appeared on: Financial Times - Author:Joshua Franklin
