My RSUs and ESPP shares will be forced to sell as my company is being acquired by another (new company is not public). The price it is being sold at will leave me with an overall capitol loss of ~20K (most long-term with some short-term shares being sold). Since this is going to happen, I'm thinking of also selling most of my other shares in which I have made long-term capitol gains (NVDA +10K, GOOG +1K, AMZN +1K, etc) and then buying all these shares back since I would like to hold onto them longer. Therefore the ~20K in losses that I'm forced to take is somewhat "offset" by selling shares I've earned gains from, wiping out my capitol gains tax and having a better tax situation. Then buy back the shares I've sold from NVDA, GOOG, AMZN, etc, and I no longer have to worry about a bigger tax bill on the capitol gains when I finally do decide to sell.
I don't know much about the taxing on capitol losses/gains and buying back stocks you've recently sold for a profit. So am I missing something here, is it as simple as I have stated to avoid a much higher tax bill in the future by doing this or am I way off? Also, selling shares for a profit and then buying them back the next day to lower the taxes I would pay on capitol gains tax is allowed? Or is there some rule/law that says you can't do that? Sorry for the basic questions, but this is new to me. Thanks for any help, much appreciated!
Submitted August 17, 2024 at 12:21AM by Yahdontsaythat https://ift.tt/Iiqh1vF
