12-06-2012, 02:06 PM
It will be interesting. Lots of finance articles are discussing people dumping stock before the end of the year in anticipation of higher taxes next year. Articles on AAPL in particular mentioned that after 4 years of growth, people holding that stock may be looking to cash out now. Good profits so far and possibly the last year of low taxes on capital gains; anyone holding will have to weigh the possibility of continued AAPL growth against the amount they will likely lose if taxes undergo an overhaul. (As one article put it, taxes on capital gains may go up. They will not go down. Nobody is going to hold in the hopes of lower taxes next year.)
I wonder if it would make sense to sell all long-term holdings right now and then use the money to just re-buy them. You would basically be cashing out all of your low-tax, long-term gains so far without changing your holdings. Any future gains will be against the new tax rates but at least you got the most out of what you already had.
I wonder if it would make sense to sell all long-term holdings right now and then use the money to just re-buy them. You would basically be cashing out all of your low-tax, long-term gains so far without changing your holdings. Any future gains will be against the new tax rates but at least you got the most out of what you already had.