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Act NOW to minimize your capital gains taxes in 2013

Bring us your Zombie Stocks 2x size croppedCapital gains taxes are increasing this year.  According to NerdWallet:  Capital gains & dividend tax rates are increasing from 15% to 20% for singles earning $400,000+ and couples earnings $450,000+. For those who cross the threshold, the higher rate only applies to capital gains over the threshold. For example, if you are single and earn $500k of which $200k is salary and $300k is capital gains, you would be taxed 15% on the first $200k ($400k limit minus $200k non-capital gains salary) and then taxed 20% on the remaining $100k in capital gains ($300k total capital gains minus $200k taxed at lower rate).

 

Income Limits for Capital Gains & Dividend Tax Rates:

Tax Rate Single Married Head of Household
0% Up to $36,250 Up to $72,850 Up to $48,600
15% $36,250 to $400k $72,850 to $450k $48,600 to $425k
20% Over $400k Over $450k Over $425k

 

Ashlea Ebeling on the Forbes staff offers 11 Ways to Beat the Big 2013 Capital Gains Tax Hike: Tip 3 is “Harvest Losses. Don’t forget to look at the losers in your portfolio, and consider selling to harvest losses and offset any gains. People are always going to have assets in their portfolio that have losses.”

Whether your long term capital gains tax rate in 2013 is 15% or 20%, you can reduce your tax bill by unloading any losing investments you have and taking the write-off this year.  However, for a bullet proof write-off, you need proof-of-bona-fide-sale documentation that will satisfy the IRS requirements.  CapGain Solutions is here to help you get it quickly and easily.  To realize your tax loss in 2013, you must divest the stock before December 31.   Sell today to shield your 2013 capital gains!