Tax Planning & Preparation




Step 3: Tax Planning & Preparation

The third step focuses on your overall tax efficiency.

Your new portfolio will be tax-optimized with the goal of maximizing the after-tax dollars you take home. At your request, your tax documents and 1099's can be consolidated into one location, minimizing the stress you feel surrounding tax preparation.

By the end of this step, you will have a tax-efficient portfolio actively managed with the intent to maximize after-tax gains and minimize the amount you lose to taxes.

Included in this step:



  • Tax Planning Strategies

  • Tax Reporting

  • Tax Loss Harvesting




Tax Planning Strategies




Tax costs represent the single highest investor expense for taxable accounts.

By implementing investment and estate planning strategies that account for tax implications, you can reduce, defer or eliminate tax drag. Chicago Partners focuses on several strategies for efficient tax management:

  • Asset Location in Taxable vs. Qualified (401k, IRA, etc.) Accounts
  • Low Portfolio Turnover
  • Rebalancing with cash flows
  • Early IRA contributions & conversions
  • Timing of fund investments
  • Managing and avoiding AMT where possible




Tax Loss Harvesting




Tax loss harvesting is the practice of selling securities at a loss. By realizing or harvesting the loss, you can offset taxes on your capital gains and income.




Tax Reporting



Chicago Partners will help you consolidate your tax-sensitive investment information in preparing your tax return. To the extent requested, we are available to work with your accountant to provide necessary reports and lessen the burden of your annual deadline.