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JohnFx ♦
JohnFx ♦
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Inherited Should I sell and repurchase this stock which has increased 10 foldfor a tax benefit?

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Kathy D
Kathy D
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I inherited stock 15 years ago with a basis of $54, most recently at $498. I just read an article which discussed selling and immediately repurchasing the same stock to establish a higher cost basis, but did not mentionedmention selling at a loss. That makes no sense to me since selling would immediately generate the capital gains tax, which bumps me into the next tax bracket. Is there a scenario in which it makes sense to sell and repurchase if I want to hold onto the stock, other than using to offset any current losses?

I inherited stock 15 years ago with a basis of $54, most recently at $498. I just read an article which discussed selling and immediately repurchasing the same stock to establish a higher cost basis, but not mentioned selling at a loss. That makes no sense to me since selling would immediately generate the capital gains tax, which bumps me into the next tax bracket. Is there a scenario in which it makes sense to sell and repurchase if I want to hold onto the stock, other than using to offset any current losses?

I inherited stock 15 years ago with a basis of $54, most recently at $498. I just read an article which discussed selling and immediately repurchasing the same stock to establish a higher cost basis, but did not mention selling at a loss. That makes no sense to me since selling would immediately generate the capital gains tax, which bumps me into the next tax bracket. Is there a scenario in which it makes sense to sell and repurchase if I want to hold onto the stock, other than using to offset any current losses?

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Kathy D
Kathy D
  • 9
  • 2

Inherited stock which has increased 10 fold

I inherited stock 15 years ago with a basis of $54, most recently at $498. I just read an article which discussed selling and immediately repurchasing the same stock to establish a higher cost basis, but not mentioned selling at a loss. That makes no sense to me since selling would immediately generate the capital gains tax, which bumps me into the next tax bracket. Is there a scenario in which it makes sense to sell and repurchase if I want to hold onto the stock, other than using to offset any current losses?