As we approach year-end, this is a good time to review your realized gains and losses.

Please log into your Black Diamond client portal and do the following:

1. Go to Portfolio Dashboard
2. Click on the Gains/Losses tab
3. Review your realized gains and any realized losses for any taxable accounts for 2025

If you expect to owe taxes this year, or if you want to see whether we can reduce your taxable gains, reply to this email and we will take a look.

A few quick notes:

• If you are invested solely in our Equity Innovation portfolio, almost all positions are up this year, so there is typically very little we can harvest for tax savings.

• If you have exposure to Equity Growth, Equity Core, or Equity Low Volatility, there are positions in those strategies that are down this the year. Depending on your specific holdings, we may be able to lower your taxable income by harvesting losses.

• Every client’s portfolio is different, so this is handled case by case.

How to Access the Right Numbers Inside Black Diamond

Start on the Portfolio Dashboard page.

Top-left filter:
Select only your taxable accounts (Individual or Joint).
Exclude retirement accounts since they don’t create taxable gains.

Top-right filter:
Set the date range to Year-to-Date.
This ensures you are viewing realized gains for 2025 only.

After those two filters are applied, scroll to the Gain/Loss section.

You’ll see two groups of numbers:

• Unrealized (not relevant for taxes)
• Realized (this is what matters)

In the realized section, you’ll see:

• Short-Term Realized Gain/Loss
• Long-Term Realized Gain/Loss

These are the numbers used to estimate your taxes.

How to Estimate Taxes From the Realized Section

Short-Term Realized Gains
These are taxed at your ordinary income rate.
Example:
If short-term realized gains are $40,494 and your bracket is 24%, the estimate is:
$40,494 × 24% = $9,719

That’s your estimated short-term tax.

Long-Term Realized Gains
Taxed at 15% or 20% depending on income.

Single filers:
• 15% up to $518,900 taxable income
• 20% above that

Married filing jointly:
• 15% up to $583,750 taxable income
• 20% above that

Example:
If long-term realized gains are $102,760 and you fall into the 15% bracket:
$102,760 × 15% = $15,414

That’s your estimated long-term tax.

Total Estimated Tax

‍Add the two amounts together: Total Tax Owed = ($9,719 + $15,414) = $25,133

Specific Scenarios

Sometimes the numbers won’t line up perfectly — for example:

• Positive short-term but negative long-term
• Positive long-term but zero or negative short-term
• Realized losses but a positive total gain
• Any mix that doesn’t look straightforward

If you are not fully sure how to interpret your exact gains and losses or how they apply to your tax situation, please reach out and we can walk through it with you.

If you're interested in exploring tax loss harvesting opportunities before year-end, just let us know, and we'll take a closer look to see what options might work for you.

We wish you and your family a wonderful holiday season and a prosperous start to the new year!