Capital Gains Management

The 3.8% Net Investment Income Tax (NIIT) is a Medicare contribution tax on investment income.

The IRS has very limited case law on what constitutes a substantially different fund. However, here is what we do in our own trading.

If you have cost basis information missing in a taxable account, it is important to work with your custodian on correcting the missing information.

These complex formulas help decide when highly appreciated investments should be sold and the proceeds put in a different investment philosophy.

Even though a holding has gone down, there can be several advantages to selling it anyway. Here are six reasons you may want to sell for a loss.

During a down market like this one, now is your chance both to harvest capital losses as they occur and rebalance your portfolio.

While you can only use $3,000 per year of capital losses to reduce your taxable income, you should bank as much capital loss as possible for other future uses.

Keeping a careful accounting of your investment’s cost basis isn’t glamorous, but it can help you save time and money when it comes time to sell.

The process of correcting cost basis problems, although time consuming, is worthwhile.

Is what I’m accomplishing here worth sacrificing the step up in basis? If it is not, perhaps there is a better way to implement your estate wishes.

Punishing people for inflation is neither fair nor good economic policy.

These are complex formulas, but they are valuable calculations that show that there is an expected increase of return which will justify selling even a highly appreciated asset.

For a currency intended to make money simple and easy, IRS regulations make it a nightmare of compliance issues.

Among its many changes, the Tax Cuts and Jobs Act created a new tax concept when it comes to managing the capital gains.

We’ve been waiting to see what our congressmen and women are going to decide for our 2018 tax law. As we’ve already entered the holiday season and can see the new year in sight, they are certainly cutting it close. … Read More

When you sell an investment that has appreciated, the IRS looks at your tax rate and taxes the gains accordingly.

Giving appreciated stock not only allows you to support your favorite charity but also avoid paying capital gains tax on your gifted stock.

For children with lower incomes, there is an opportunity to give them appreciated stock to shift the capital gains to a lower tax bracket.

It is better to leave stock to a family member in your estate plan than to gift them the stock while you are alive.

Careful tax planning can avoid much of the capital gains tax.

David Marotta was interviewed on the radio discussing how to figure out know when to realize capital gains and how much to realize when you do.

The capital gains tax traps wealth in an investment vehicle requiring special techniques to free the capital without penalty.

Now you may pay one of at least four different capital gains rates. The strategies to deal with capital gains differ for each level.

There are at least four different capital gains tax rates. Here’s how to minimize yours.

This technique can avoid paying any tax, a savings worth up to 36.1%.

Now that the Bush tax cuts have expired and Obamacare will add additional tax burdens, many people need to think twice before realizing a large gain on their investments.

The correct rate for the capital gains tax is zero, zip, nada. Perhaps it is even negative!

You can use both investment losses and investment gains to good tax advantage.

No matter what worthy organizations you support, you can give up to 15% more if you give them appreciated stock instead of cash.

October is a good time to review your portfolio for investments that can be sold for a loss.