Postal Customer
Ottumwa Publishing
ottumwapost.com
•••••JUNE 29, 2022•••••
Watching your investments take a tumble in the stock market generally isn’t a fun experience. But seasoned investors know that market volatility – and the inherent ups and downs that come with it -- is a It May Be a Time for Tax natural part of the proLoss Harvesting cess, and that historical trends show that market swings even out over time. In the right conditions, a market drop can even present opportunities, such as with tax loss harvesting. If this concept intrigues you – particularly in light of recent stock index declines - here’s what you should know: A potential tax-saving strategy The tax loss harvesting strategy applies specifically to investments held in taxable accounts. Since current taxes aren’t applied to IRAs or workplace retirement plans, this strategy is not applicable in those accounts. The tax benefit of selling a security in a loss position is that those losses could potentially reduce your tax liability. Suppose you invested $10,000 to buy 1000 shares of a stock for $10 per (Financial cont’d on pg 2)
641-208-5505
PAGE 2
SAVE OTTUMWA POST
JUNE 29, 2022
(Financial cont’d from pg 1) offset by capital losses
share more than a year ago. Today, if the stock’s value dropped to $8 per share, your initial investment is now valued at $8,000. The stock may recover and eventually appreciate in value. But if you sell it today, you could claim a $2,000 long-term capital loss. Is that the right choice?
you claim.
Note that you may not need or want to offset capital gains if your taxable income in 2022, including the gains, is $41,675 or less for single tax filers or a married taxpayer filing separately, or $83,350 or less for a married couple filing a joint return. Taxpayers with total taxable income The upside of tax-loss and gains below those selling income thresholds qualOne deciding factor is ify for a 0% tax rate on whether you have capital long-term capital gains. gains that can be offset by the losses you incur Singles and married coufrom selling securities ples filing a joint return in a negative position. can use up to $3,000 Long-term capital gains of net capital losses to which relate to assets offset ordinary income you’ve held for more ($1,500 for a married, filthan a year are taxed ing separately, tax filer). at rates of 0, 15, or 20 Beyond that, unused percent based on your losses can be carried federal taxable income. If forward to offset potential you had a $3,000 longtaxable capital gains in term capital gain to claim future tax years. on your 2022 tax return, that would come with a Cautions about tax federal income tax bill of loss selling $450 if your long-term The downside to selling capital gain is taxed at a position that has sufthe 15% rate. If, at the fered a loss is that you same time,you lock in a can’t purchase that spe$3,000 long-term capital cific security or one that loss on a different invest- is “substantially identical” ment, it will offset that to it 30 days before or gain and eliminate the after the sale at a loss tax liability with respect without the possibility of to that capital gain. running afoul of the wash sale rules and deferLikewise, if you own ring the loss. Choosing mutual funds in a taxable to sell also means you account, they may pay sacrifice the potential to out capital gains distribu- benefit from a rebound in tions this year, even if the price of the security they are not performing while you are out of the well at the present time. position. You want to Those gains too can be be certain that you are
comfortable not owning a specific security for a period of time that could be a candidate for tax loss harvesting. Most of all, any buy-orsell decisions you make regarding your portfolio need to go beyond just the tax consequences. Talk to your financial advisor about how tax loss harvesting opportunities fit into your overall financial plan. Be sure to consult with your tax advisor as well to understand how tax rules apply. Duane J Lusson, CFP, ChFC, CLU, MSFS, is a Private Wealth Advisor with Ameriprise Financial Services, Inc. in Ottumwa, Iowa. He specializes in fee-based financial planning and asset management strategies and has been in practice for 30 years. To contact him, call 641-684-4200 or stop by his office at 527 W. Second in Ottumwa, Iowa. Investment advisory products and services are made available through Ameriprise Financial Services, LLC, a registered investment adviser. Investment products are not insured by the FDIC, NCUA or any federal agency, are not deposits or obligations of, or guaranteed by any financial institution, and involve investment risks including possible loss of principal and fluctuation in value. Ameriprise Financial, Inc. and its affiliates do not offer tax or legal advice. Consumers should consult with their tax advisor or attorney regarding their specific situation. Ameriprise Financial Services, LLC. Member FINRA and SIPC. © 2022 Ameriprise Financial, Inc. All rights reserved. File #4748944
JUNE 29, 2022
SAVE OTTUMWA POST •OTTUMWAPOST.COM
PAGE 3
Warrant Wednesday
Wapello County has over 500 active warrants. Warrant Wednesday’s are designed to help law enforcement locate wanted persons, with the public’s help. Do NOT attempt to apprehend these individuals. Instead, call the Ottumwa Police Department at (641) 683-0661 or Wapello County Sheriff ’s Department at (641) 684-4350 if you have any information on their whereabouts. Your tips can be made anonymously.
Name: Tracy Allen Dyer DOB: 01/31/1966 Warrant Issued: 06/23/2022 Warrant Details: Failure to Appear Domestic Abuse Assault
Name: Christian Dennis Martinez DOB: 04/23/1996 Warrant Issued: 06/16/2022 Warrant Details: Failure to Appear Violation of Probation, Possession of a Controlled Substance, Domestic Abuse Assault & Driving While Barred
Name: Lance Daryn Wild DOB:05/30/1977 Warrant Issued: 06/15/2022 Warrant Details: Theft 2nd Degree
Ray’s Longbranch Homemade 1/2 lb. Tenderloins & Hamburgers Drakesville, IA • 722-3355
Name: Alexandrea Rachelle Willey DOB: 04/01/1990 Warrant Issued: 06/23/2022 Warrant Details: Failure to Appear Violation of Restraining Order x2 & Harassment 3rd Degree
PAGE 4
SAVE OTTUMWA POST
common Baltimore orioles. The most interesting pictures were the ones taken at night. I did not expect any overnight photos and was surprised by quite a number of them. At first, it was difficult to determine what had triggered the camera. at several The Selfie Stick Looking pictures into the nighttime series, I could tell For those it was a flying squirwho do not know, a rel. His big eyes reselfie stick is an exflected the light as he tension for a camera cautiously ate grape that puts it farther jelly. Flying squirrels, away from the perthough quite common, son taking a picture are rarely seen. They of themselves. I had are nocturnal, gliding a need for one when from tree to tree in I was trying to get a picture of a particular the darkness foragbird I was having trou- ing for fruits, nuts, bird ble identifying. It was eggs, and apparently, feeding on the grape grape jelly. According jelly at the oriole feed- to the time stamp on the camera, he would er. I needed to put stop in around midthe motion detector night for a light snack. camera farther away from the bird than on About 3:00 the feeder so he could AM, either take a picture of him- he or anself and be in focus. I other one went to the shop and would stop within a few minutes, by to eat again. emerged with a bird selfie stick for a trail camera. Attaching it to Since the the feeder, all I had to selfie stick was workdo was wait. ing, I deSince we have not been raided cided to by raccoons, I left the leave it up camera up all day and for several days, just overnight. The next to see what was going morning, I pulled the memory card to see if on at the grape jelly feeder. Both types of I had been successful. Of the 129 photos orioles stopped by throughout the day. taken in twenty-four Every night, the flying hours, most were of both male and female squirrel or squirrels returned. My wife and Baltimore orioles. Several pictures were I both enjoyed reviewing the pictures each of the mystery bird, morning. which I thought was One mornjust an extremely dark ing, coffee in hand, I oriole turned out to headed to the porch. be an orchard oriole I glanced toward the rather than the more
oriole feeder and saw half the feeder, the camera, and selfie stick on the ground. Some disaster had befallen the setup during the night. I retrieved the camera, scrolled down to the nighttime photos, and soon solved the mystery. There were several pictures of the flying squirrel. About an hour later, a raccoon came into the picture. Several photos showed him on the feeder, happily eating jelly. Another picture showed him walking down the selfie stick toward the camera. The last picture was a blur of raccoon fur going by the lens as the feeder broke in two and the whole works and raccoon plunged to the ground. It might be time to go back to live trapping raccoons before I put the selfie stick back on the remodeled oriole feeder.
JUNE 29, 2022