Tax-Smart Strategies

With elevated volatility and more modest forward-looking return expectations, it’s increasingly important to get your money working harder and smarter to help meet your financial goals. Our tax-smart strategies can help you achieve potentially higher after-tax returns, while tailoring your portfolio to make it uniquely yours.
It’s not what you earn, but what you keep that matters.

Seeing stocks you own drop in value is never easy, but there is an upside to market downturns. It’s called “tax loss harvesting,” and it can put stock losses to work for you.

At its simplest, tax loss harvesting is a strategy designed to help reduce your overall tax liability, so you can keep more of what you earn. It works by extracting tax benefits from selling investments at a loss – which can be used to offset capital gains realized elsewhere in your portfolio. When applied effectively, tax loss harvesting may result in enhanced after-tax returns.

How can tax loss harvesting help generate after-tax returns?

Why Tax-Smart Strategies with J.P. Morgan Private Bank?

Our tax-smart approach combines our experience with cutting edge technology, to deliver a cost-effective and personalized strategy that can optimize your after-tax returns.

Our investment expertise

$700+
Billion

Discretionary Assets Under Management

400+ 
Strategies

Created for you (across mutual funds, separate accounts and single/multi-asset strategies)

#1 Private
Bank

Awarded “Best Private Bank in the World” in 2020, 2021 and 2022 by Global Finance magazine.

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How do tax-smart strategies actually work?

Using a tax-smart strategy can help investors keep more of what they earn. Now may be an opportune time to consider adding one to your portfolio.

September 25, 2022

Frequently Asked Questions


What is tax-loss harvesting?

Simply put, tax loss harvesting is the timely selling of securities at a loss to offset realized investment gains elsewhere in your portfolio. This provides an opportunity to lower your tax bill, allowing you to keep more of your returns.
 

What personalization options are available for my portfolio?

We offer a variety of ways to customize your portfolio to your individual preferences.  We have over 40 screens for concentrated stock / industry exposure or values.
 

What is the minimum investment?

The minimum investment will depend on the strategy that you choose. For example, we offer minimums as low $250,000 where you can personalize your S&P 500 exposure.
 

What if I have appreciated holdings?

For investors looking to fund their portfolio with securities, we offer flexible transition options that are customized to their individual tax budget preferences. We’ll partner closely with you to design a portfolio that aligns with your wealth goals and preferences, while enhancing your after-tax return potential. You can also transition your existing holdings into a tax-efficient manner that’s cognizant of your unique tax budget preferences.
 

How will I know how my portfolio is performing?

Our robust performance reporting quantifies your tax benefit relative to the benchmark, helping you to easily understand the value-add of our active tax management.
 

What are the potential risks of a tax loss harvesting strategy?

Tracking error is one potential risk of a tax loss harvesting strategy. Tracking error reflects how closely your account aligns to your target portfolio – and we have a robust risk framework in place to ensure tracking error is minimized while the strategy looks for loss harvesting opportunities.

Investors considering a tax loss harvesting strategy should look at their portfolio holistically, to ensure that they stay on track to their overall investment goals.

Contact us to discuss how we can help you experience the full possibility of your wealth.

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Important Information

Tax loss harvesting may not be appropriate for everyone.  If you do not expect to realize net capital gains this year, have net capital loss carryforwards, are concerned about deviation from your model investment portfolio, and/or are subject to low income tax rates or invest through a tax-deferred account, tax loss harvesting may not be optimal for your account. You should discuss these matters with your investment and tax advisors.

KEY RISKS

JPMorgan Chase & Co., its affiliates and employees do not provide tax, legal or accounting advice. This material has been prepared for informational purposes only. You should consult your own tax, legal and accounting advisors before engaging in any financial transactions.  There is no guarantee that any investment strategy illustrated will be successful or achieve any particular level of results.

Depending on the strategy, liquidation can result in additional costs, taxable gains or losses.  Investors should understand the costs involved in using securities to fund your account, as well as review the potential tax consequences of liquidations with your tax advisor, before funding your account with securities.  

There is no guarantee that any returns, including after-tax returns will achieve positive future results, and may lose value.

This material has been prepared for informational purposes only and not designed to be a recommendation for any specific investment product, strategy, plan feature or other purpose.

All investments involve risk, including loss of principal. There can be no assurance that any return objectives will be met.

The impact of a tax loss harvesting strategy depends upon a variety of conditions, including the actual gains and losses incurred on holdings and future tax rates.

This material is not intended to provide, and should not be relied on for tax, legal and accounting advice. You should consult your own tax, legal and accounting advisors before engaging in any financial transaction. JPMorgan Chase & Co., its affiliates, and employees do not provide tax, legal or accounting advice.

This information is subject to change without notice, is not complete and does not contain certain material information about any specific investment strategy, including additional important disclosures and risk factors associated with such investment and information about fees, trading costs and taxes. 

© 2022 JPMorgan Chase & Co. All rights reserved.

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