re: Tax question on a home sale - ordinary income vs capital gains

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Now I'm curious about this situation. It looks like their money manager should've done this reallocation more gradually over a 3 year period to soften the blow of the capital gains?

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At a minmimum, there should have been a clearer understanding that the advisor was going to do this, so the client can be prepared.

Ideally, yea, try to spread this over a few years.

Look... I get WHY the advisor did what he did. That's what he is paid to do. The client was very heavy in a bunch of old, low-basis stock.

The tax is important. But, more and more, we are having to do tax planning around both Medicare premium adjustments like this, but also Marketplace subsidies.

You are seeing a lot of people retire at 60, 61 etc without any retiree health insurance. Cobra sometimes is an option but hella expesnsive, and that runs out. So there are more and more people who are going on the marketplace for 2-3 years as a bridge to Medicare. Because the subsidies are income based, they are looking to keep their income down yet still have cash needs. It's causing hard looks at drawing down Roth balances and drawing down non-retirement assets, delaying social security benefits, etc until after they are on Medicare. Long term, those might not be the best options, but there is such a concern about those premiums.