The Single Most Important Tax Rule for 2020
The stock market has had a wild ride in 2020, and with three months left in the year, there's no guarantee that there won't be even more craziness to come. As the end of the year approaches, more people will start looking at tax planning in order to pay as little as possible to Uncle Sam in early 2021.
One great way to cut your tax bill is to harvest tax losses. However, investors never like to sell a stock when its price is low, especially if they think that it can bounce back.
What you'd like to do is sell the stock, take the loss, and then immediately buy it back so you can own it when it recovers. Can you do that?
Source Fool.com
