Hi.
I'm looking to sell a significant long term holding for the first time, and I just realized I know nothing...
Without getting too specific here are the details...
This holding was purchased 20 years ago. Dividend and Caiptal gains have been reinvested
Last December there was a 9% capital gains distribution reinvested which (i think) means that at least 9% is short term capital gains.
I'm looking to sell about 80% of this investment to move elsewhere for diversification.
Obviously, for a 20 year investment, this will have a significant impact on my 2019 taxes.
My options are:
Average Cost (ACST)
First In First Out (FIFO)
High Cost (HIFO)
Last In First Out (LIFO)
Loss/Gain Utilization (LGUT)
Low Cost
My initial thoughts are that FIFO makes sense. That way everything I sell will be LongTerm gains, and what's left will be most recent.
Am I off base? or does that make sense from a tax perspective?
Income = around 40k so LT gains will be 15% (right)
I do have some unrealized capital losses elsewhere that I could sell (but I would rather not) but it would only offset about (7% of the capital gains from this sale)
Let me know if you need any more info. I wasn't sure what is necessary.
Submitted October 05, 2019 at 08:02PM by TheStrangeOldSteve https://ift.tt/2VlbJf0
