The Motley Fool Discussion Boards
Financial Planning / Tax Strategies
|Subject: Re: Locking in tax-free cap gains||Date: 3/21/2013 11:29 PM|
|Author: TMFPMarti||Number: 118108 of 125423|
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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