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Author: Wradical Big gold star, 5000 posts Old School Fool Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 120792  
Subject: Re: Taking a Long Term Capital Gain Date: 12/11/2007 12:30 AM
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If I sell a stock this week which produces a long term capital gain on my 2007 taxes, are there any tax ramifications if I repurchase the same stock the next day (other than establishing a new basis)?
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Not much. But why do it?

You're picking up a taxable gain, and converting a long-term position to a short-term position. Your holding period for the new shares will start when you buy them.

Do you qualify for the 5% rate this year, so as to jack up your basis by paying minimal tax? If you stay in a low bracket, the gain will be 0 in 2008.


Bill
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