Tax planning: How the wealthy aim to cut their 2026 IRS bills (opens in new tab)

The S&P 500 has surged 75% since the beginning of 2023. Investors are turning to long-short tax-loss harvesting in order to minimize capital gains. With traditional tax-loss harvesting, investors sell losing assets to offset realized gains on others. Long-short tax strategies, on the other hand, borrow against the portfolio to buy short positions expected to fall and maintain long positions expected to thrive.