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I am going to sell some of my stock for a personal expense. I've owned the stocks for maybe 2 years.

Is it a good idea to do so before Jan 1 to avoid getting hit with an increase in capital gains taxes?

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Is the stock price currently fairly stable, or pretty volatile? How are the futures on it looking, is there indications the price might move a lot in the near future? – Gagravarr Dec 23 '12 at 5:07
I don't know. MSFT, XOM, VZW, Duke Energy, & Coca-cola – Kevin Meredith Dec 24 '12 at 4:14
Other considerations: * paying the taxes soon than later, * "January effect" and other sellers doing the same thing – Full Decent Jul 16 '14 at 16:56
up vote 7 down vote accepted

I usually start to answer a question of this type with "Don't Let the Tax Tail Wag the Investing Dog."

But, it seems you are specifically asking about a 12/26 sale vs a 1/2 sale. And the fiscal cliff, to clarify, is not referencing the potential market moves that might occur if no agreement is reached, but with regards to the cap gain rate potentially going from a maximum 15% for long term (1 year+ holding period) to one's normal rate, for you, maybe from 15% to 25%.

If the difference is truly days, the sale is planned for money you need, I see no harm, and possibly a bit of gain by pulling the sale into this year.

Welcome to SE, Kevin. Hope to see you here again.

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