MooreBonds
Thinks s/he gets paid by the post
Didn't know if this dawned on anyone, or if anyone employed this action, but I just realized one move that would make sense for those looking at downgrading their tax brackets AND also having accumulated capital losses carried over:
If you are nearing retirement and anticipating a drop in income tax rates and also have accumulated losses (which I realize won't describe many investors in this forum....except for [-]me[/-] those who are foolish enough to make costly investment errors), it would be a smart tax move to sell the positions with gains to offset your losses, and then re-buy them, such that you aren't taking your capital losses off against income that is taxed at a lower rate.
Although, there are other angles to consider, such as if you have carryover losses, and intend to use those losses to offset large capital gains in retirement and keep yourself in the 0% tax bracket vs bumping up into, say, a 15% bracket (just as much as a differential as 28% tax bracket while working vs 15% while retired).
If you are nearing retirement and anticipating a drop in income tax rates and also have accumulated losses (which I realize won't describe many investors in this forum....except for [-]me[/-] those who are foolish enough to make costly investment errors), it would be a smart tax move to sell the positions with gains to offset your losses, and then re-buy them, such that you aren't taking your capital losses off against income that is taxed at a lower rate.
Although, there are other angles to consider, such as if you have carryover losses, and intend to use those losses to offset large capital gains in retirement and keep yourself in the 0% tax bracket vs bumping up into, say, a 15% bracket (just as much as a differential as 28% tax bracket while working vs 15% while retired).