I read a WSJ article yesterday that suggested investors were selling positions and taking capital gains this year as they believed that regardless of which way the election goes CG taxes are going up.

What are your thoughts?

The Tax Moves Investors Are Making No Matter Who Wins the Election

quote:
Taxpayers aren’t waiting for the election results to make changes to how they invest and earn money, figuring both candidates could lead to higher tax rates.

In 2017, Donald Trump signed the Tax Cuts and Jobs Act that lowered taxes for millions of individuals. Now, the new president and Congress face the looming expiration of many of those tax cuts at the end of 2025. If they don’t reach a deal by then, taxes will rise for nearly two-thirds of taxpayers, according to Erica York, a research director at the Tax Foundation.

Among the moves investors might want to make if they are convinced taxes are headed higher is to sell stocks. Selling now would lock in capital gains at the current 20% top rate......

LINK

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Posted by RoyalWe

Prairieville, LA

Member since Mar 2018

3757 posts

Posted on 11/4/24 at 8:14 am to Rabt

Zero validity, just like most scare/greed articles. They don't know, but they know they can write about it and sell it.

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Posted by UltimaParadox

North Carolina

Member since Nov 2008

47330 posts

Posted on 11/4/24 at 8:55 am to Rabt

I mean if there is a split congress very likely the tax cuts expire.

However that being said even Harris said she wanted to extend the Trump Tax cuts for incomes under 400K, which is basically everyone... except.

If your cap gains is 20% then you are outside of that window. So combine that with standard tax loss harvesting, I could see it

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Posted by Big Scrub TX

Member since Dec 2013

37005 posts

Posted on 11/4/24 at 3:11 pm to UltimaParadox