this would be a tax related question. I started graduate school this year and by the end of the year will have earned less than $15,000. I have couple stocks that I have held for several years that have appreciated 200%-300% in value since I bought them. Because my income is so low, would I benefit from selling stock X/Y, taking a $20-30K profit, then repurchasing the stock(s)? I really like the companies and their stock and when I first purchased them had seen them as 10+ year stocks to hold. I'm just wondering if I sold them now, instead of in a future year where they have theoretically gone up in value and where I would have a full-time income, if I would be saving myself from paying potential higher taxes on it in the future. The idea being that by repurchasing them and then selling in say 5 years from now, the percentage of gained income would be less. And I would be filing single

Does that make sense?

Any advice would be greatly appreciated.


What you're talking about is called "tax gain harvesting," and it is considered good tax management.

From The Oblivious Investor, investors in the 10% or 15% bracket pay 0% tax on long-term capital gains.

For an interesting take on never paying income taxes again, check out Go Curry Cracker. You can claim up to $70,000 or so in capital gains before paying any taxes if you are the 10% or 15% tax bracket.

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