The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Cash in on current Tax Rates||Date: 11/12/2012 11:15 AM|
|Author: SeniorCit||Number: 116895 of 125203|
I submitted this plan in the Berkshire Hathaway board and no responses received to date. May be more appropriate for the Tax Strategies board.
There have been a number of Threads in recent weeks related to strategies directed toward reducing Capital Gains and Dividends in 2013 assuming the worst in proposed tax rate increases.
As a long term BRK stockholder, and a daily reader of this board, I would like to try on a strategy so see if any one could offer pros or cons for implementing.
I currently own long term BRK-B’s with a gain, if sold of over $45,000.
I have carry over losses in my taxable account of about $50,000. (from a loss in another stock going way back.)
I am pretty certain that my Brokerage company will do a sale from my account of all my BRKB shares and simply transfer them back to my account at the price sold. ( I know I have had them sell shares in my IRA account and transfer them into my taxable account at the price at time of sale. That is what I do when taking my MRD each year.)
All my BRKB shares are showing a capital gain so there will be no problem of the Wash Sale rule taking effect.
I ran a trial run with my 2011 Tax Cut software and it totally offset the gains from the proposed sale with the carry over losses and there was no increase in taxes for the year.
I realize that the $50,000 carry over losses would cover many $3,000 yearly Capital Gains losses.
Doing this sale will enable me to reset my cost basis, many of which are in $55-65 range.
And I would be able to take advantage of the current 15% tax rate rather than the 23.8%.
Depending on responses I may also submit this question to the Tax Strategies board.
Thanking you for your consideration.
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