Highlights

  • While predicting the outcome of pending legislation is fraught with peril, some of the key changes under discussion would affect taxable investment portfolios.
  • Three of these include the possibility of a higher top federal income tax bracket, higher capital gains tax rates for high income households, and taxing unrealized gains for high income households.
  • While equity markets grew more volatile by the end of September, the quarterly return for the S&P 500® was still positive and the year-to-date return remained strong.
  • Despite the drawdown during the quarter, opportunities for tax loss harvesting were limited. Other tax management techniques likely played a more prominent role in many investors’ accounts.
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