Let’s Talk... Capital Gains and End of Year Check-up!
It might be wise to take a look at where you stand at the end of the year in your non-qualified investment accounts. Here are some things you should do before 2021.
- First, consider selling highly appreciated stock. Some stocks are at stratospheric levels. Right now you pay a historically low long-term capital gains tax. Do you think the capital gains taxes will be higher in the future? If you’re like me, the answer is a resounding yes.
- Second, look to see if you have stocks that haven’t done so well and analyze whether to sell them offsetting corresponding long-term capital gains. This is called harvesting tax losses.
- Third, did you auto re-enroll in your company share purchase plan? Not everyone gets these emails and it may slip your mind. Take a look to make sure you are enrolled for next year.
- Fourth, if you’re self-employed, consider making a big purchase this calendar year because of bonus depreciation. If Trump’s tax cuts go away, this benefit does also.
- Lastly, If you own mutual funds outside of qualified retirement plans, look to see what kind of capital gains they paid. Remember when everyone was selling in March? Possible gains get passed to current shareholders .
I offer a free 30 min meeting via zoom or coffee to discuss these matters. This year it may be worth taking me up on it!
