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Financial Planning / Tax Strategies


Subject:  Re: Locking in tax-free cap gains Date:  3/21/2013  11:29 PM
Author:  TMFPMarti Number:  118108 of 124774

I want to sell a stock position that has increased in value significantly over several years (long-term) and then repurchase it after 31 days.

I believe this will allow me to redefine my cost basis thus lowering my capital gains when I sell the stock decades from now when I am (hopefully) in a much higher tax bracket.

What am I missing?

1. There's no need to wait 31 days before repurchasing. You're thinking of the wash sale rule, which applies only to sales for a loss.

2. Don't forget the effect of commissions.

3. Don't forget the effect on state taxes.

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