---
title: How does Vinovest account for the tax implications of rebalancing?
description: How does Vinovest account for the tax implications of rebalancing?
---

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# How does Vinovest account for the tax implications of rebalancing?

We know that selling assets that are valued higher than their initial purchase price usually involves realizing gains and incurring taxes, which is why we don’t simply sell every overweight asset to get your portfolio back to its targets. 

When we rebalance your portfolio, we evaluate the tradeoffs and will only realize gains when the benefit of moving your portfolio toward your target allocation outweighs the expected tax cost. We may also sell assets that are valued below their initial purchase price to offset these gains.

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