Long term capital gains tax deferral

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airahcaz
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Long term capital gains tax deferral

Post by airahcaz »

Assuming same tax bracket and no expected losses in the following year, is the only reason to realize a long term capital gain in the following year vs current year is to stay invested?
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Gill
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Re: Long term capital gains tax deferral

Post by Gill »

There’s also the time value of money.
Gill
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RickBoglehead
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Re: Long term capital gains tax deferral

Post by RickBoglehead »

And market volatility. Value can go up or down. More, or less gain if you wait. Known entity today, speculation next year.
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airahcaz
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Re: Long term capital gains tax deferral

Post by airahcaz »

Allow me a caveat that I can get access to the capital this year by selling a call option.
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samsoes
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Re: Long term capital gains tax deferral

Post by samsoes »

Also to be considered is the effect of AGI on the amount of SS which becomes taxable, and ACA/Medicare premiums, if applicable.
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dwickenh
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Re: Long term capital gains tax deferral

Post by dwickenh »

samsoes wrote: Tue Oct 02, 2018 7:27 am Also to be considered is the effect of AGI on the amount of SS which becomes taxable, and ACA/Medicare premiums, if applicable.
These two are important considerations!!
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett
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airahcaz
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Re: Long term capital gains tax deferral

Post by airahcaz »

dwickenh wrote: Tue Oct 02, 2018 8:39 am
samsoes wrote: Tue Oct 02, 2018 7:27 am Also to be considered is the effect of AGI on the amount of SS which becomes taxable, and ACA/Medicare premiums, if applicable.
These two are important considerations!!
Even if the person is not collecting SS yet?
1) Invest you must 2) Time is your friend 3) Impulse is your enemy 4) Basic arithmetic works 5) Stick to simplicity 6) Stay the course. (Plagiarized, but worth stealing)
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dwickenh
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Re: Long term capital gains tax deferral

Post by dwickenh »

airahcaz wrote: Tue Oct 02, 2018 9:01 am
dwickenh wrote: Tue Oct 02, 2018 8:39 am
samsoes wrote: Tue Oct 02, 2018 7:27 am Also to be considered is the effect of AGI on the amount of SS which becomes taxable, and ACA/Medicare premiums, if applicable.
These two are important considerations!!
Even if the person is not collecting SS yet?
The quote states "if applicable" so it could affect SS if either person of a couple is claiming and doing a joint return.
If not claiming SS yet, no effect. It may affect Medicare premiums as they look back 2 years before filing for Medicare(surcharge possible).
The market is the most efficient mechanism anywhere in the world for transferring wealth from impatient people to patient people.” | — Warren Buffett
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