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re: Avoiding capital gains taxes when reallocating portfolio

Posted on 7/9/14 at 8:27 am to
Posted by LSU0358
Member since Jan 2005
7947 posts
Posted on 7/9/14 at 8:27 am to
Have you held them long enough for them to be considered long term capital gains?

If not consider buying puts to protect yourself on downside. That brings a tax liability on the puts if things go down, but if done properly would be better than the ~20% difference between long and short term capital gains.
Posted by Shepherd88
Member since Dec 2013
4661 posts
Posted on 7/9/14 at 8:51 am to
Sell your highest cost basis lots out to limit your taxes, HIFO.

One of the rules of a solid financial plan however is don't let the consideration of taxes to ruin your plan,
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