The Motley Fool Discussion Boards

Previous Page

Financial Planning / Tax Strategies


Subject:  Re: Taxes on Investing Profits Date:  7/30/2011  12:10 PM
Author:  TMFPMarti Number:  113822 of 127637

I'm in the process of readjusting my taxable portfolio. It is about 51 percent equities, and I'd like to bring that down to about 40%.

The problem is that all of the positions show big gains. OK...they are long-term, but I'm afraid that sales will leave me with a big income tax bill next year.

In the past, I've offset gains with losses. What other strategies could I use?

Get some information about an overpriced stock in a company that's about to file bankrupcy, buy a lot of it, lose your investment, et voila! No cap gain to worry about when everything nets on your Schedule D.

Or you could count your blessings that you've nothing but winners and pay your maximum 15% tax on long-term cap gains. You can, of course, just leave things alone and not rebalance, but I assume that there's a reason you want to reduce your equity exposure. Don't let the tax tail wag the investment dog.

Rule Your Retirement Home Fool
Copyright 1996-2018 trademark and the "Fool" logo is a trademark of The Motley Fool, Inc. Contact Us