Tax-Optimized Financial Strategies

Serving as president of Bice Wealth Management, Cubby Bice is a longtime presence in the financial community of Mooresville, North Carolina. Conversant in diverse aspects of asset allocation, Cubby Bice excels in tax-advantaged strategies.

One fundamental tax strategy is managing income taxes owed to the federal government by designing how capital losses and gains are recognized. Utilizing tax losses is essential, as losses on security sales can be used to offset realized investment gains. In the case of excess losses, $3,000 may be claimed against taxable income for the current year, with the remainder of the loss carried forward and used to offset realized gains or income in the future.

In addition, individuals can seek out tax-exempt securities, such as municipal bonds, which avoid federal levies and often get preferential state tax treatment. Keep in mind that certain forms of income, such as bond interest and real estate investment trusts, are assessed as ordinary income and taxed accordingly. Also, any securities held for at least 12 months are considered long-term gains and losses. This caps the maximum federal tax rate at just under 24 percent, as opposed to more than 40 percent for short-term gains.

Investments in securities involve risk, including the potential loss of principal invested. The firm does not expressly or implicitly adopt or endorse any of the expressions, opinions, or content posted by fans or any third parties on this site