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l008com · Dec 29, 2011, 06:13 PM

Is anyone selling stock tomorrow to take advantage of the 0% capital gains? I plan on selling about $16,000 worth of Apple stock, and then buying it right back. So my position won't change, but I'll "cash out" a lot of my tax liability, which is good because that liability is 0%

For those that don't know, despite common wisdom, long term capital gains is actually taxed in brackets too. And if you are in one of the lower two tax brackets, your capital gains tax rate is 0% this year. I'd save another bundle if they extended that 0% for one more year. I have a lot more Apple stock that I may be selling for good next year.

So tomorrow is the last trading day of the year. I imagine a lot of people will be cashing out stocks to take advantage of this rate. Are youuuuu?

Shaddim · Dec 29, 2011, 06:37 PM

Nope. I do not qualify, but I will be doing some buying tomorrow because of the sale.

l008com · Dec 29, 2011, 06:38 PM

Yeah if there's a big sell off, I may end the day with more shares than I started with, all tax-free-ish. Sadly, I still have to pay 5% long term capital gains to the state.

Doofy · Dec 29, 2011, 07:11 PM

Capital gains tax?
Muhahahahahaha.
Oh come on, you were expecting me to predictable about this.

Shaddim · Dec 29, 2011, 07:21 PM

Originally Posted by Doofy

Capital gains tax?
Muhahahahahaha.
Oh come on, you were expecting me to predictable about this.

How do you enjoy your NIT, VAT, and FIT?

All I have is cap gains. Then there are all those suckers who pay SS...

Doofy · Dec 29, 2011, 07:36 PM

Originally Posted by Shaddim

How do you enjoy your NIT, VAT, and FIT?

En español et en français.

Move to Bermuda and dump that silly CFC-restricting passport already.

Salty · Dec 29, 2011, 07:50 PM

I'm just glad I live in a country whose economy hasn't tanked.

Doofy · Dec 29, 2011, 08:22 PM

Originally Posted by Salty

I'm just glad I live in a country whose economy hasn't tanked.

Canuckistan flatlined last quarter. You'll tank soon enough.

el chupacabra · Dec 29, 2011, 09:18 PM

Wash rule?

l008com · Dec 29, 2011, 09:19 PM

Originally Posted by el chupacabra

Wash rule?

Wash rule applies to taking losses, not taking gains.

mattyb · Dec 30, 2011, 06:16 PM

Originally Posted by l008com

Is anyone selling stock tomorrow to take advantage of the 0% capital gains? I plan on selling about $16,000 worth of Apple stock, and then buying it right back. So my position won't change

Your position will change. You'll have less shares. And thats just from the spread.

l008com · Dec 30, 2011, 06:17 PM

Originally Posted by mattyb

Your position will change. You'll have less shares. And thats just from the spread.

How do you figure, I'll have less shares?

mattyb · Dec 31, 2011, 11:07 AM

Originally Posted by l008com

How do you figure, I'll have less shares?

When your broker asks a market maker for quotes on Apple, he or she will get 2 prices : buying and selling. There is a small difference between the prices : this is the spread. There isn't ONE price for Apple. There will also be broker fees which will eat into your $16,000.

l008com · Dec 31, 2011, 11:19 AM

Ok you're talking about an amount of money equal to about 1/10th of one share. And all I need to do is wait 5 minutes for the share price to go down twenty cents or so and I'll make up all fees.

But instead what I decided to do was place a limit order for 41 shares (I sold 40), at $395, which is what it would have to fall to for me to be able to afford 41 based on what I sold 40 at. That way I can pick up an extra share in the process

And if I get sick of waiting, I'll just cancel that order and buy on the next down day.

SVass · Dec 31, 2011, 11:52 AM

Originally Posted by l008com

Is anyone selling stock tomorrow to take advantage of the 0% capital gains? I plan on selling about $16,000 worth of Apple stock, and then buying it right back. So my position won't change, but I'll "cash out" a lot of my tax liability, which is good because that liability is 0%

...

So tomorrow is the last trading day of the year. I imagine a lot of people will be cashing out stocks to take advantage of this rate. Are youuuuu?

I have done this for several years. I have a few no load mutual funds that pay out "qualified dividends" as well as earn capital gains. I sell/buy them annually to reset the acquisition cost. So yes, this tactic reduce my future tax liability. I suggest not waiting for the last day of the year. Note for those on Social Security: The taxable amount of SS is increased by taxable income which means that your capital gains will still be taxed at one-half of your 15% rate or 7.5%.
sam

l008com · Dec 31, 2011, 11:55 AM

Originally Posted by SVass

I suggest not waiting for the last day of the year.

Why?