Anytime we discuss finances, we should consider the tax implications of transactions throughout the year. Whether they occur through selling stocks or real estate, if you profit on a sale, that is a taxable gain, and the government wants their share.  

Wouldn’t it be nice if there was a way to offset those gains and lower your tax obligations on the money you worked hard to make? Partnering with Credent can make that a reality with a process called tax-loss harvesting.  

Here are the four things you need to know to get started:

1. What is tax-loss harvesting? – We are all familiar with investing through buying and selling assets. Ideally, the assets we buy today should sell for more sometime in the future. Whether we buy and sell stocks or real estate, it is the same objective. The byproduct of this process is that when an asset appreciates and is sold, the taxable gain is created. That is where tax-loss harvesting comes into play.  

Tax-loss harvesting is, very simply, the process of selling an asset at a loss in order to realize the taxable impact of the loss and offset the gains you made on other assets. 

2. How does tax-loss harvesting help you? – It comes down to what we can and cannot control. We cannot control the fact that taxes must be paid, but we can work to reduce the amount we need to pay. With proper strategy, you can capitalize on the natural volatility of the market and work towards offsetting gains you realized elsewhere. In addition, losses you take today can be accumulated indefinitely and used at the time of your choosing.

3. You might wonder: isn’t selling something at a loss inherently a bad thing? – The key to tax-loss harvesting is understanding that volatility in the market is natural and losses will occur whether they are harvested or not. You want to partner with a firm that looks at every market condition as an opportunity. Credent Wealth does just that and treats every market cycle as an opportunity for you. 

4. What is the role of an advisor throughout this process? – Working with an advisor is imperative to the success of a tax-loss harvesting strategy, but many advisors are unhelpful when it comes to tax management. They might ignore tax-loss harvesting entirely, which leaves you to bear the full weight of the losses and the taxes. Other times, they might place trades that harvest a loss but fail to consider the bigger picture or what is best for you.  

Partnering with a firm like Credent is essential. We execute a proven, level-headed process that works in your best interest, house an investment team dedicated to managing your investments and tax strategies, and assess harvesting opportunities weekly. 

We also believe in the power of partnership, so we collaborate with your CPA to ensure we make decisions that always serve you. By being intentional, we strive for optimal results.  

To see how you can benefit from tax-loss harvesting, reach out at the form below, email your Wealth Manager, or send us a message at contactus@credentwealth.com to learn more. 

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Investment advice offered through CX Institutional, a registered investment advisor.

The opinions voiced in this material are for general information only and are not intended to provide specific advice or recommendations for any individual. To determine which investment(s) may be appropriate for you, consult your financial advisor prior to investing.

CX Institutional, LLC d/b/a Credent Wealth Management is a Registered Investment Advisor (RIA) headquartered in Indiana with over $4.3 billion in assets under management, offering a uniquely client-centric approach to wealth management through commission-free, transparent, and impactful financial planning and investment strategies. Since its inception in 2018, Credent has grown rapidly through a combination of organic growth and strategic acquisitions focused on providing advisors with a customized, cooperative transition as they build their own succession plans. Credent’s culture creates lasting, meaningful relationships, enabling advisors to do their best work while ensuring clients can maintain their standard of living without financial worry. Credent has been recognized on multiple industry lists, including Forbes America’s Top RIA Firms since 2023, Financial Advisor Magazine’s 2025 Top 50 Fastest Growing Firms and InvestmentNews 2025 5-Star RIA Firms. For more information, visit CredentWealth.com.