| Liquidity for Tax Season|
Did you know that you may be able to finance the full payment of your tax liability through a loan? The Internal Revenue Service (IRS) explains this strategy on their IRS website.
A securities based loan may create the liquidity you need to finance your tax liability without liquidating assets, diminishing cash reserves or disrupting your investment strategy. Eligible securities, including concentrated or restricted positions, held in a Morgan Stanley brokerage account may be used as collateral for the loan or line of credit.
Key benefits of securities based lending through Morgan Stanley include:
The same securities based loan that you establish to finance your tax payment may also meet a variety of other permissible needs, such as expanding your business, purchasing luxury items or funding a bridge loan.
- Competitive Rates
Before you liquidate assets to pay your tax payment, consider the potential costs of doing so – such as taxes on capital gains, the potential loss of future growth or an imbalance in your portfolio's overall asset allocation. There are risks associated with using your assets as collateral in a securities based loan, including possible margin calls on short notice. See below for details.
Speak with your Financial Advisor or Private Wealth Advisor to learn about securities based loans and potential liquidity strategies for your individual tax payment needs. If you do not have an Advisor, visit www.morganstanley.com/wealth to find one near you.
CRC 820985 2/14
Securities Based Lending Tax Flyer
Financing and Liquidity Strategies Brochure