Take the 2-minute tour ×
Personal Finance & Money Stack Exchange is a question and answer site for people who want to be financially literate. It's 100% free, no registration required.

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?

share|improve this question
    
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 at 16:56

1 Answer 1

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.

share|improve this answer

Your Answer

 
discard

By posting your answer, you agree to the privacy policy and terms of service.

Not the answer you're looking for? Browse other questions tagged or ask your own question.