I have $200K of long-term capital gains.
Is it best to sell now in 2010 (and reinvest after 30 days) to incur cap gains tax in 2010 at the lower rates or simply hold (for perhaps 15+ years longer) until I actually need to withdraw these funds in my retirement?
My total tax estimate if I did this in 2010 vs 2011 (or after) is:
2010 - tax due is $27K
2011 - tax due is $41K
So $14K higher tax if I don't do this in 2010.
Seems like selling (and reinvesting after 30 days) would be best. Am I missing something? Thanks.
Is it best to sell now in 2010 (and reinvest after 30 days) to incur cap gains tax in 2010 at the lower rates or simply hold (for perhaps 15+ years longer) until I actually need to withdraw these funds in my retirement?
My total tax estimate if I did this in 2010 vs 2011 (or after) is:
2010 - tax due is $27K
2011 - tax due is $41K
So $14K higher tax if I don't do this in 2010.
Seems like selling (and reinvesting after 30 days) would be best. Am I missing something? Thanks.