Capital gains - Now or later

Taxes General Forum - Tax professionals meeting place and answers to queries. (Moderated) 

Yahoo!   Google   Windows Live   del.icio.us   digg   Netscape

Subject Author Date Capital gains - Now or later NadCixelsyd 10-28-2009  Re: Capital gains - Now or later Bill Brown 10-28-2009
Posted by NadCixelsyd on October 28, 2009, 10:34 am Please log in for more thread options The 15% capital gains and 15% tax on qualified dividends: Do they expire next year?? I heard that Obama wants to have them expire sooner. Any progress on Obama's wishes in Congress. Here's why I ask: I have a $40000 capital gain in stock ABC for 2009. I also have a $14000 as-yet-unrealized loss in stock XYZ. One thought is to double-up on XYZ stock, wait 31 days, and sell the old high-basis XYZ to offset part of the ABC gain. The other thought is to do nothing and simply pay all the cap-gain tax on the entire $40k gain. I'd save the high-basis stock for when and if the rates go up. Thoughts?? -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Posted by Bill Brown on October 28, 2009, 11:37 am Please log in for more thread options > The 15% capital gains and 15% tax on qualified dividends:  Do they > expire next year??  I heard that Obama wants to have them expire > sooner.  Any progress on Obama's wishes in Congress.  Here's why I > ask: > > I have a $40000 capital gain in stock ABC for 2009.  I also have a > $14000 as-yet-unrealized loss in stock XYZ. > > One thought is to double-up on XYZ stock, wait 31 days, and sell the > old high-basis XYZ to offset part of the ABC gain. > > The other thought is to do nothing and simply pay all the cap-gain tax > on the entire $40k gain.  I'd save the high-basis stock for when and > if the rates go up. > > Thoughts?? > The smart money is guessing a 20% max rate on qualified dividends and long term capital gains will come to pass. That, of course, is more than 15%. So after transaction costs and considering the time value of money, if you think your better off flipping your investments to recognize the gains now then go for it. -- << ------------------------------------------------------- >> << The foregoing was not intended or written to be used, >> << nor can it used, for the purpose of avoiding penalties >> << that may be imposed upon the taxpayer. >> << >> << The Charter and the Guidelines for submitting posts >> << to this newsgroup as well as our anti-spamming policy >> << are at www.asktax.org. >> << Copyright (2007) - All rights reserved. >> << ------------------------------------------------------- >> Similar Threads Posted Short Term Capital Gains and Long Term Capital Losses January 13, 2007, 2:12 am Capital Gains October 30, 2007, 11:47 pm Capital Gains=0 January 18, 2008, 7:37 pm Capital Gains October 7, 2008, 6:10 pm Capital gains - just want to be sure i have it right January 8, 2009, 10:40 pm Capital Gains February 3, 2009, 9:11 pm Alt Min Tax from Capital Gains March 15, 2009, 1:43 pm capital gains questions March 7, 2007, 4:29 am Nominee capital gains May 25, 2007, 10:51 pm Re: Nominee capital gains June 1, 2007, 10:42 am