Capital gains - Now or later

The 15% capital gains and 15% tax on qualified dividends: Do they expire next year?? I heard that Obama wants to have them expire sooner. Any progress on Obama's wishes in Congress. Here's why I ask:

I have a $40000 capital gain in stock ABC for 2009. I also have a $14000 as-yet-unrealized loss in stock XYZ.

One thought is to double-up on XYZ stock, wait 31 days, and sell the old high-basis XYZ to offset part of the ABC gain.

The other thought is to do nothing and simply pay all the cap-gain tax on the entire $40k gain. I'd save the high-basis stock for when and if the rates go up.

Thoughts??

Reply to
NadCixelsyd
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The smart money is guessing a 20% max rate on qualified dividends and long term capital gains will come to pass. That, of course, is more than 15%. So after transaction costs and considering the time value of money, if you think your better off flipping your investments to recognize the gains now then go for it.

Reply to
Bill Brown

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