Long term capital gains tax deferral
Long term capital gains tax deferral
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?
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)
Re: Long term capital gains tax deferral
There’s also the time value of money.
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Re: Long term capital gains tax deferral
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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Re: Long term capital gains tax deferral
Allow me a caveat that I can get access to the capital this year by selling a call option.
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)
Re: Long term capital gains tax deferral
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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Re: Long term capital gains tax deferral
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
Re: Long term capital gains tax deferral
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)
Re: Long term capital gains tax deferral
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