How PPLI Impacts Tax Loss Harvesting Strategies

Offshore Tax with HTJ.tax · Jun 9, 2026 · 2m

Tax-loss harvesting is a popular strategy in traditional investment portfolios.Investors sell underperforming assets to:✅ Realize capital losses ✅ Offset capital gains ✅ Potentially reduce current tax liabilityBut inside a Private Placement Life Insurance (PPLI) policy, the tax equation changes completely.⚖️ 1️⃣ What Is Tax-Loss Harvesting?In a taxable investment account:• Losses can be realized by selling investments below their purchase price.These losses may then be used to:• Offset capital gains • Reduce taxable investment income • Improve after-tax returns🌍 2️⃣ Why PPLI Changes the…