Recently, overseas investment returns have become a hot topic in the investment circle. Many investors often have a cognitive bias: they think that annual investment returns are calculated based on the unrealized gains of the account assets at the end of the year. In fact, the real core is "Delivery profits and losses", which refers to the profits obtained after selling the assets.

This concept can be understood as follows: as long as the assets remain in the account, regardless of how much their book value increases, they are merely unrealized "paper wealth" and do not trigger current tax liabilities. Only when the investor confirms a "sell" operation and converts the assets into cash will this portion of the gains be formally counted as realized profits for the year.

Based on this principle, investors can adopt an annual planning strategy: if profits are made through selling operations within the year, but the funds are reinvested into new stocks or assets before the end of the same fiscal year (i.e., before December 31), from an annual settlement perspective, this cash essentially transforms back into an investment. This operation allows the realized gains for the year to be "offset" by the newly purchased assets, thereby reasonably deferring tax liabilities to the future.

Therefore, for savvy investors, year-end reviews should not only focus on changes in total assets but should also closely examine the "sell" transaction records for the entire year. This directly affects the efficiency of personal annual tax arrangements.

At the end of the year, should investors consider adjusting their portfolios for tax optimization? How can this short-term operation be balanced with a long-term holding strategy? These are questions worth pondering for every overseas asset holder.

It is worth noting that tax strategies should be carried out under the premise of legality and compliance, and investors should make cautious decisions based on their own circumstances.