No. of Recommendations: 2
I have been retired since 2000. In 2000 I bought 1000 RAI for $18 and change. I have held it since. There have been 2 splits. I now own 4000 shares at $4+. Today's price is $42+. That's about $38 caption gain.

Next, I receive $2360 quarterly which is taxable at 15%. What worries me is the probable change in the treatment of dividends and capital gains in 2013.

I am considering selling 2000 shares for a capital gain of $76,000. I am considering investing that money in "High Yield, Tax Free Funds". I will have a large tax hit for 2012, but I feel 15% beats 23+%. And I will reduce my taxable dividend by 1/2.

Is this a good idea? If so, should I bite the bullet and sell all 4000 shares, pay the 15% tax and invest all the $ in those monthly non-taxable funds?

I would really appreciate some advice,

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