While many investors wait until December to consider capital gains and losses, starting the process in September can offer greater flexibility, fewer surprises, and more opportunities to optimize your tax outcome.
We work closely with you to identify tax-saving strategies like tax-loss harvesting—an approach that allows you to use investment losses to offset capital gains, reduce taxable income, and enhance after-tax returns.
Understanding Tax-Loss Harvesting
Tax-loss harvesting is a year-end tax strategy where you sell investments that are currently worth less than what you paid for them. This allows you to “harvest” the loss and use it to offset realized capital gains from other investments. If your total losses exceed gains, you can deduct up to $3,000 from ordinary income (or $1,500 if married filing separately), with any losses exceeding the maximum carried forward to future years.
For example:
If you realized $40,000 in capital gains earlier in the year, and you identify $20,000 in eligible losses, harvesting those losses could cut your taxable gain in half, potentially saving you thousands in taxes depending on your bracket.
Avoiding the Wash Sale Rule
One critical consideration in tax-loss harvesting is the IRS wash sale rule, which disallows a loss if you buy the same or a “substantially identical” security within 30 days before or after the sale. Failing to follow this rule means your tax deduction will be postponed, eliminating the near-term benefit.
To maintain market exposure and still follow the rules:
- Replace sold securities with ETFs or mutual funds that track similar—but not identical—indexes.
- Use broadly diversified funds that provide similar exposure without triggering a wash sale. Consult with our team before repurchasing any sold investment.
Reinvesting with Purpose
Selling a losing investment isn’t just about tax savings, it’s an opportunity to rebalance and improve your portfolio’s long-term strength. We help clients:
- Shift into more tax-efficient investment vehicles
- Diversify holdings that may have become overly concentrated
- Align risk exposure with updated goals and time horizons
Tax-loss harvesting isn’t a one-size-fits-all solution, and we take care to ensure your reinvestment strategy keeps you on track toward your objectives while reducing your tax burden.
As part of our ongoing process, we monitor your taxable accounts for tax-loss harvesting opportunities throughout the year—not just in December. As always if you have any questions, please give us a call!
Golf Tip of the Week
Fix Your Slice with the “Sideways Shaft” Drill
If your drives consistently veer right, the cause may be your clubface angle—tips and tricks can help.
What to Do:
- Practice With a Sideways Grip: Turn the club perpendicular to your stance (shaft like a T). Take slow half swings, focusing on rotating your shoulders—not your arms.
- Restore Connection: This setup encourages a square clubface throughout the swing and helps you maintain a smooth swing path.
- Progress Gradually: Once muscles adjust, resume full swings with renewed awareness of your shoulder turn and club face alignment.
This drill builds the right sense of movement and helps you drive straighter with less effort—great for weekend rounds or low-pressure practices.
Golf Tip adapted from Golf Digest. Read the full article here: Pivot Around the Post
Recipe of the Week
Classic Guacamole
Ingredients
- 3 ripe avocados
- 1 lime (juiced)
- ½ teaspoon salt
- ½ teaspoon cumin (optional, for warmth)
- ½ medium red onion (finely diced)
- 1–2 Roma tomatoes (seeded & diced)
- 1–2 garlic cloves (minced)
- 1 jalapeño (seeded & minced, adjust to taste)
- 2 tablespoons fresh cilantro (chopped)
Directions
- Mash the Avocados – Cut avocados in half, remove the pit, and scoop into a mixing bowl. Mash with a fork, leaving a little texture.
- Add Freshness – Mix in lime juice and salt to prevent browning and enhance flavor.
- Build the Flavor – Stir in cumin (if using), onion, tomatoes, garlic, jalapeño, and cilantro.
- Taste & Adjust – Add more lime, salt, or cilantro as desired.
- Serve Immediately – Pair with tortilla chips, veggie sticks, or as a topping for tacos and burgers.
Recipe Tip adapted from Food Network. Read the full article here: Classic Guacamole
Travel Tip of the Week
5 Stunning Spots to See Fall Foliage in North Carolina
When most people think of leaf-peeping, New England usually comes to mind. But North Carolina deserves just as much attention. Thanks to the Blue Ridge and Great Smoky Mountains, the western part of the state explodes into a canvas of reds, yellows, and oranges each fall.
The tricky part is timing your trip — foliage varies by elevation. Higher peaks over 5,000 feet turn first in September, while valleys at 3,000 feet or lower peak closer to late October. The good news? If you plan your travels carefully, you can catch the colors for weeks on end.
Here are five of the best destinations to experience the magic of fall in North Carolina:
- Blue Ridge Parkway
Known as one of America’s most scenic drives, this iconic route offers overlook after overlook of breathtaking mountain views. Take a leisurely picnic stop or enjoy the half-day stretch between Brevard and Grandfather Mountain for some of the state’s most dramatic fall scenery.
- Biltmore Estate (Asheville)
The Biltmore’s grounds transform into a painter’s palette each October, with sugar maples, red maples, and hickories showing off their best hues. The estate’s gardens and walking trails add even more charm, making this an ideal spot for both history buffs and leaf lovers.
- Little Switzerland
This small mountain town along the Blue Ridge Parkway (mile marker 334) feels like something out of Europe. With sweeping valley views and the option to stay at the Switzerland Inn, it’s a cozy and picturesque stop during peak season in mid-to-late October.
- Great Smoky Mountains National Park
Home to nearly 100 species of deciduous trees, the Smokies are a fall wonderland. Early color starts high in the mountains by mid-September, but October brings the real show as maples, oaks, and hickories blanket the park in vibrant shades.
- Hendersonville
Want a taste of small-town autumn? Hendersonville combines leaf peeping with apple orchards, cider, and fall festivals. Visit the Jump Off Rock overlook or The Horse Shoe Farm for some of the area’s most beautiful views in late October.
Want More?
North Carolina has even more hidden gems like Grandfather Mountain, Boone, and DuPont State Forest. You can read the full list here: Travel + Leisure – 10 Best Places to See Fall Foliage in North Carolina.
Travel Tip adapted from Travel and Leisure. Read the full article here: Best Places to See Fall Foliage in NC
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Greenville, SC 29607
Disclosure:
BCA is a Securities and Exchange Commission registered investment advisor. The advisory services of BCA Private Wealth are not made available in any jurisdiction in which BCA Private Wealth is not registered or is otherwise exempt from registration.
Please review BCA Private Wealth Disclosure Brochure for a complete explanation of fees. Investing involves risks. Investments are not guaranteed and may lose value.
This material is prepared by BCA Private Wealth for informational purposes only. It is not intended to serve as a substitute for personalized investment advice or as a recommendation or solicitation or any particular security, strategy, or investment product.
No representation is being made that any account will or is likely to achieve future profits or losses similar to those shown. You should not assume that investment decisions we make in the future will be profitable or equal the investment performance of the past. Past performance does not indicate future results.
