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Financial Planning / Tax Strategies


Subject:  Re: Locking in tax-free cap gains Date:  3/21/2013  11:48 PM
Author:  Wradical Number:  118109 of 127617

What am I missing?

(As Phil said:)

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

AND - the gain increases your AGI, which may affect a number of provisions that involve phaseouts of deductions and credits, or the taxable portion of Social Security.

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