disneysteve
Thinks s/he gets paid by the post
- Joined
- Feb 10, 2021
- Messages
- 2,982
I want to sell off some of the stock holdings in our taxable accounts. All have some degree of unrealized capital gains so there's no tax loss harvesting to do. No matter what we sell, there will be taxes to pay, which is fine. I'm trying to figure out the best approach. For various reasons, like ACA, I don't want to realize more than about 25K in capital gains from the sales this year.
We own 2 taxable mutual funds that we've had for up to 30+ years, worth 140K and 225K. The problem with selling any of those shares is that I don't have total cost basis info. They weren't required to track it back then. I'm pretty sure I have all or nearly all statements from day one but it would be a monumental task to figure out the basis. I suppose I could specify individual lots to sell since I could use the old statements to know how much was paid for each lot. Would that work? But what about reinvested earnings over the years? Does that alter the basis of individual lots or just the overall account?
I own 3 individual stocks which I inherited 4 years ago. I should have sold them right away at the stepped up basis but I didn't so here we are. The 3 stocks are worth a total of nearly 500K. One of the 3 makes up 335K of that and has grown tremendously since I inherited it. I do know the cost basis for all 3 stocks since it is their value at the time I got them. I could liquidate some of those shares.
We also own 1 index mutual fund (515K) and one high dividend ETF (145K) and we do have cost basis info for those holdings.
How would you go about choosing what you sell? My preference is to reduce the holdings of the 30-year-old mutual funds because they throw off a lot of taxable capital gains each year which always screws with our taxes at the end of the year so if that's a feasible option, I'd pick that.
Any help would be appreciated.
We own 2 taxable mutual funds that we've had for up to 30+ years, worth 140K and 225K. The problem with selling any of those shares is that I don't have total cost basis info. They weren't required to track it back then. I'm pretty sure I have all or nearly all statements from day one but it would be a monumental task to figure out the basis. I suppose I could specify individual lots to sell since I could use the old statements to know how much was paid for each lot. Would that work? But what about reinvested earnings over the years? Does that alter the basis of individual lots or just the overall account?
I own 3 individual stocks which I inherited 4 years ago. I should have sold them right away at the stepped up basis but I didn't so here we are. The 3 stocks are worth a total of nearly 500K. One of the 3 makes up 335K of that and has grown tremendously since I inherited it. I do know the cost basis for all 3 stocks since it is their value at the time I got them. I could liquidate some of those shares.
We also own 1 index mutual fund (515K) and one high dividend ETF (145K) and we do have cost basis info for those holdings.
How would you go about choosing what you sell? My preference is to reduce the holdings of the 30-year-old mutual funds because they throw off a lot of taxable capital gains each year which always screws with our taxes at the end of the year so if that's a feasible option, I'd pick that.
Any help would be appreciated.