Send an email
Avoid:
Tax strategies may focus on reducing or eliminating capital gains exposure altogether. The first example of this is when investors may choose to hold certain highly valued assets in order to bypass the tax haven and gain leverage.
Common survival strategies include lending their portfolios for income without selling and incurring taxes, donating appreciated assets to low-income family members who may owe large capital gains taxes, and using options strategies to manage risk or monetize positions without selling them. Small common strategies available to founders and early stage investors may allow qualified shareholders to extract significant returns from investments in qualified small businesses.
Reversing:
Certain tax strategies can help investors defer when taxes are recognized, often smoothing the impact over time. One example is systematic diversification, where investors, such as managers of public companies, sell parts of a fixed position gradually.
Investors may also use tax loss harvesting to capture losses that reduce current or future gains. Other recovery tools include exchange-traded funds, which allow investors to donate a fixed stock in exchange for a diversified portfolio without triggering an immediate tax, and opportunity zones, which -starting again in 2027-will allow taxpayers to reinvest capital gains in designated areas in exchange for up to five years of deferred capital gains and, in some cases, the investment base only partially to get a deferment until December 31, 2026).
Offset:
Offset strategies reduce tax liability by matching benefits with deductions or other tax-advantaged activities. A prime example of this donation, where offering securities held for more than a year can allow investors to avoid capital gains recognition while receiving a deduction for the fair market value of the asset, subject to income limits.
Investors have many tax-efficient diversification options, each of which can be a powerful move away from a concentrated position that may add unnecessary risk to portfolios. Allspring Global Investments can provide insight into this and more as investors prepare for their financial future.
ALL 01282026-ixng4s4a
Allspring Global Investments does not provide accounting, legal, or tax advice or investment recommendations. Any tax or legal information in this brochure is merely a summary of our understanding and interpretations of certain income tax laws and is not exhaustive. Investors should consult their tax advisor or legal counsel for advice and information regarding their particular situation.
Allspring does not offer options. Options involve significant risk and are not suitable for all investors.
Diversification does not guarantee or guarantee better performance and cannot eliminate the risk of investment loss.
This information is provided for informational purposes only. This content and the information therein does not constitute an offer or solicitation in any place where or to any person that is not authorized or illegal to do so and should not be considered investment advice, investment recommendations, or investment research in any place.
INVESTMENT RISK: All investments involve risk. Your principal may be at risk. The value, price, or income of an investment or financial instrument may go up and down and is not guaranteed.
You may not get back your initial investment. Past performance is not a guarantee or reliable indicator of future results.
Allspring Global Investments™ (Allspring) is a trading name of the asset management companies of Allspring Global Investments Holdings, LLC, an indirect subsidiary of certain private equity funds GTCR LLC and Reverence Capital Partners, LP These companies include but are not limited to Allspring Funds Management, LLC, and Allspring Global Investments, LLC. Unless otherwise stated, Allspring is the source of all data (current or as of the date specified). The content is provided for informational purposes only. The views, opinions, assumptions, or ratings are in no way those of Allspring or its affiliates and no representation is made as to the appropriateness, accuracy, or completeness. They should not be relied upon and are subject to change without notice.
© 2026 Allspring Global Investments Holdings, LLC. All rights reserved.
