No. of Recommendations: 1
After all these years of selling, I've not used any 'clever', but legal ways of avoiding the tax.
I am planning to sell 100% of my The Trade Desk (TTD) holdings. ~+160% gain, held over five years, FWIW.
I want to take half the proceeds as cash (and pay the tax), but the other half directly into adding to an existing NVO position.
Is there an easy way to avoid paying the tax on the half that I put straight into NVO? If yes, tax avoidance could amount to ~~~$5000.
No. of Recommendations: 2
Sadly you will have to pay Capital Gains Taxes (Schedule A + IRS form 8949) on everything you sell regardless of what you plan to do with the $'s after the fact.
From a Google Search:
What is the rule for capital gains tax?
It is owed for the tax year during which the investment is sold. The long-term capital gains tax rates for the 2023 and 2024 tax years are 0%, 15%, or 20% of the profit, depending on the income of the filer.1 The income brackets are adjusted annually.
No. of Recommendations: 0
HWR: Thanks. I had completely forgotten the "0%" for incomes <$89,250*, per IRS. (*For married, filing jointly.)
On retired income, we meet the <$89,000 number easily. I should see no cap gains tax.
Thanks again.
For anyone else who want to see the Investopedia page, see:
https://www.investopedia.com/taxes/capital-gains-t... 