Death & Taxes

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    Posted: 13 July 2012 11:05 PM #256

    Good article:  http://grist.org/politics/asymmetrical-polarization-the-lefts-gone-left-but-the-rights-gone-nuts/ that describes much of the polarization here and everywhere else.

         
  • Posted: 14 July 2012 02:50 AM #257

    Mav - 13 July 2012 09:20 PM

    Think carefully and speak clearly.  You mean to advocate for raising cap gains taxes to what extent?  Higher than effective ordinary income taxes in some cases?  Long term or also short term which is already taxed at ordinary income?

    Should IRAs/tax-delayed/advantaged accounts be eliminated to capture tax revenue in the here and now?  Doesn’t seem fair to hit my account and not those.

    Maybe make mark-to-market a default, too.  “Paper gains” will be real; no wash sale issues.

    And all this with after-tax dollars.  Sounds like fun.

    No one else is thinking carefully *or* speaking clearly in this thread. I don’t see why I should start. : )

         
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    Posted: 14 July 2012 10:29 AM #258

    Due to the expected increase in LT cap gains tax in 2013 I will be selling most/all of my LT taxable aapl positions before the end of the year. Wondering if anyone else is contemplating the same. I’ll likely be reinvesting those cap-gains funds in aapl/LEAPs sometime (soon?) after the sale.

      cheers
        JohnG

         
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    Posted: 14 July 2012 11:24 AM #259

    johnG - 14 July 2012 01:29 PM

    Due to the expected increase in LT cap gains tax in 2013 I will be selling most/all of my LT taxable aapl positions before the end of the year. Wondering if anyone else is contemplating the same. I’ll likely be reinvesting those cap-gains funds in aapl/LEAPs sometime (soon?) after the sale.

      cheers
        JohnG

    Yes.  Most of my AAPL is in an IRA that will be taxed as income when I take it out .... Ouch.  Another few shares are in a Roth IRA that started out @ $8000 and is up over $35,000 currently…. No taxes will be due on this .... Yay.

    I had 40 shares in a standard account.  I have sold 25 shares so far to fund my options trading account and will be selling the rest before the end of the year and keeping it my options trading account.

    I will also be checking into splitting my options account in order to open a Roth IRA account within this options trading account.

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    Waiting to be included in one of Apple’s target markets, but I still own an iPod, iPhone and iMac and APPL stock.

         
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    Posted: 14 July 2012 12:37 PM #260

    johnG - 14 July 2012 01:29 PM

    Due to the expected increase in LT cap gains tax in 2013 I will be selling most/all of my LT taxable aapl positions before the end of the year. Wondering if anyone else is contemplating the same. I’ll likely be reinvesting those cap-gains funds in aapl/LEAPs sometime (soon?) after the sale.

      cheers
        JohnG

    Long term options, yes. Stock, it depends. It may be more advantageous to continue to defer, especially if you’re going to buy back into AAPL. For example, if you have gains well into the highest bracket if realized but you only want a small amount of proceeds per year.

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    The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. — Steve Jobs

         
  • Posted: 14 July 2012 01:49 PM #261

    Apple II+ - 14 July 2012 03:37 PM
    johnG - 14 July 2012 01:29 PM

    Due to the expected increase in LT cap gains tax in 2013 I will be selling most/all of my LT taxable aapl positions before the end of the year. Wondering if anyone else is contemplating the same. I’ll likely be reinvesting those cap-gains funds in aapl/LEAPs sometime (soon?) after the sale.

      cheers
        JohnG

    Long term options, yes. Stock, it depends. It may be more advantageous to continue to defer, especially if you’re going to buy back into AAPL. For example, if you have gains well into the highest bracket if realized but you only want a small amount of proceeds per year.

    Agreed.  Tax rates change over time and may change again next year depending on the results of the election.  I’d thought about selling but the prospect of paying the tax bill and holding fewer shares (dividend implications) changed my thinking.

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    I don’t mind being wrong…,I just hate being wrong so FAST!

         
  • Posted: 14 July 2012 03:48 PM #262

    Over the years I’ve been putting money into my two kids’ investment accounts and buying AAPL shares. They both have sizable LT capital gains and each worked this year, making about $5,000 each. My plan is to sell all their AAPL LTCG towards the end of the year, hopefully when the RSI is over 70. People making less than maybe 35,000 pay zero LTCG tax. (That will probably change on Jan 1 2013). I’m not sure if I can buy back within a day or two. I’ll check with an accountant before then.

         
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    Posted: 14 July 2012 03:56 PM #263

    BillH - 14 July 2012 04:49 PM

    Agreed.  Tax rates change over time and may change again next year depending on the results of the election.  I’d thought about selling but the prospect of paying the tax bill and holding fewer shares (dividend implications) changed my thinking.

    Good point about the election.

    Note to self: Try to wait on these sales until after Nov 2nd.  :eg:

      cheers to the longs

         
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    Posted: 14 July 2012 04:29 PM #264

    If you’re thinking about the very long term, consider also the step up in basis for your heirs, i.e. no capital gains.

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    The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. — Steve Jobs

         
  • Posted: 14 July 2012 09:27 PM #265

    Apple II+ - 14 July 2012 07:29 PM

    If you’re thinking about the very long term, consider also the step up in basis for your heirs, i.e. no capital gains.

    Capital gains?  That’s the easy part.  Deciding whether or not to muck with their lives is considerably more difficult.  :(

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    I don’t mind being wrong…,I just hate being wrong so FAST!

         
  • Posted: 15 July 2012 09:20 PM #266

    The Three-Strike Rule

    I just had a pleasant discussion with lovemyipad (a/k/a “the boss”). I’d like to reiterate her three-strike rule has been put in place. Upon the third violation of the AFB member civility rules swift action will be taken without additional discussion or notice.

    Just a reminder there’s no name calling in the AFB and personal attacks are not allowed.

    Thank you and have a nice day grin

         
  • Posted: 16 July 2012 12:20 AM #267

    johnG - 14 July 2012 01:29 PM

    Due to the expected increase in LT cap gains tax in 2013 I will be selling most/all of my LT taxable aapl positions before the end of the year. Wondering if anyone else is contemplating the same. I’ll likely be reinvesting those cap-gains funds in aapl/LEAPs sometime (soon?) after the sale.

      cheers
        JohnG

    I’ve been thinking about doing the same thing for a while and I will probably still do it but the alternative minimum tax is a major downer—it largely eviscerates the LTCG rate.  And the AMT exemptions are really low this year.  I have zero faith that Congress will get its act together to fix anything at the end of this year or in January, regardless of the outcome of the election.

         
  • Posted: 16 July 2012 02:57 AM #268

    By what date will US citizens be selling their long term holdings to minimize tax? Won’t this be a major rock-the-boat event that will be greatly amplified by option traders and HFT? Do you have to wait before re-buying?

         
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    Posted: 16 July 2012 10:22 AM #269

    If you’re booking gains, there is no need to wait before re-buying. The tax selling must happen by the last day of the year. There’s a chance there will be a deal to extend the tax cuts as late as the end of the year or even retroactively after Jan. 1.

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    The only way to be truly satisfied is to do what you believe is great work. And the only way to do great work is to love what you do. — Steve Jobs

         
  • Posted: 16 July 2012 10:49 AM #270

    firestorm - 14 July 2012 02:05 AM

    Good article:  http://grist.org/politics/asymmetrical-polarization-the-lefts-gone-left-but-the-rights-gone-nuts/ that describes much of the polarization here and everywhere else.

    +1