Booking gains for tax purposes

  • Posted: 13 September 2012 10:34 AM

    So I use a longer term horizon for my investing since I don’t have the time or skills to play the market.  I need to book my gains in apple this year cause I’m a student and start work next year and therefore it will be taxed and capital gains taxes will likely increase next year.  Since I don’t have income this year I figure booking the gains would yield a 25% benefit, but it means I have to be out of apple for at least a month.  Obviously I would like to stay in apple long term but a 25% risk free gain can’t be passed up.  I was thinking of selling all of it and buying a Leap while I wait out the month or something, any suggestions?

         
  • Posted: 13 September 2012 02:46 PM #1

    Helios00 - 13 September 2012 10:34 AM

    So I use a longer term horizon for my investing since I don’t have the time or skills to play the market.  I need to book my gains in apple this year cause I’m a student and start work next year and therefore it will be taxed and capital gains taxes will likely increase next year.  Since I don’t have income this year I figure booking the gains would yield a 25% benefit, but it means I have to be out of apple for at least a month.  Obviously I would like to stay in apple long term but a 25% risk free gain can’t be passed up.  I was thinking of selling all of it and buying a Leap while I wait out the month or something, any suggestions?

    Why do you have to be out a month? Wash sale rule only applies to losses.

         
  • Posted: 13 September 2012 04:08 PM #2

    Oh, thanks a lot you solved this problem.  I thought wash sale rules went both ways.