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,

Print the post  


Motley Fool Income Investor
Are you a dividend-savvy investor? Check out our Income Investor newsletter.
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.