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View Diary: The GOP's Fiscal Cliff Tax (10 comments)

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  •  FromRedtoBlue - two separate issues (1+ / 0-)
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    wdrath

    It's common when there is a likely increase in capital gains tax rates for people who have appreciated capital assets they have held for a long time to sell them, recognize the gain, and pay the lower capital gains tax. It's just smart financial and tax planning. How to then reallocate the cash is a separate issue. If they view the economic risks as you do they could wait for the market to contract and re-enter at the lower prices. They can even purchase the same stocks as long as they wait for 30 days after selling and recognizing the gain. However, they may decide to reallocate the cash to different assets or even a different asset class, but that's a very individual decision based on an individuals' risk tolerance.

    "let's talk about that"

    by VClib on Wed Nov 28, 2012 at 10:49:07 AM PST

    [ Parent ]

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