Current financial position: Unemployed Student in 10% tax bracket
In brief ... I chose to change portfolio management companies from USAA to a local LLC Financial group. I started the portfolio with USAA in Nov 2011 with the proceeds of my late husband's life insurance policy.
At the onset I was informed there would be minimal fees associated with the transition, most of which would be covered in the strategic management of the switch. I believed the new management company would be more adept to tailor the investments to my future plans and mitigate any capital tax burdens.
In the years with USAA I was never hit with a capital gains tax. I am not well versed, but I assume this is because I have remained in the 10-15% tax bracket.
This year when I sat down to prepare my taxes it appears that I now have anywhere between 60K - 150K in capital gains due to 'uncovered' long and short term investments.
It is my understanding that this occurred during the transition due to an oversight on the part of the Financial Planning LLC.
I will be meeting with the LLC group this afternoon so they can outline the issue. The message stated that 'based on various reports the kind of taxes that are owed are not half as bad as he thought'
I would appreciate input on the following ... 1. Shouldn't the strategic transition have covered any potential tax burdens? 2. If the transition was not handled to my benefit, is the LLC at fault, and if so what are my options for restitution? 3. If I am indeed on the line for between 10-20k in taxes, what options might I have to pursue against the LLC for shit business handling?
Any input or advice would be greatly appreciated.
Submitted April 19, 2018 at 02:35PM by comet_throwaway124 https://ift.tt/2vsP7zX
