Tax avoidance is a good way to save some money legally. Some even went to the length to prolong life support for several weeks so to qualify better tax exemption the following year. Here are what I did.
- Sold most profitable stocks that I owned over 12 months in taxable accounts. I bought back some. I maintained a 15% tax bracket last year, so the tax bill from Uncle Sam is virtually 0 (virtually due to more tax on social security if applicable).
I bet this is the same trick Ronney and Buffet used. This could be the last year for this low tax rates.
- Converted some money from 401K to Roth this year.
- Will sell some long term losers next year hoping to offset some gainers.
- Unloaded/moved some dividend stocks to 401K from taxable accounts.
- Gifted my son some appreciated stocks.
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(c) TonyP4 2012. Written in 5/10/12. Last updated in 5/10/12.
Disclaimer:
Do not gamble your money you cannot afford to lose. Past performance is a guideline and does not guarantee future performance.
All my posts are for informational purposes only. I'm not a professional investment counselor. Seek one before you make any investment decision.
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Tax update for myself (may not applicable to you).
ReplyDeleteIn 2013 (expecting no last minute change) and on,
* Long term capital gain. 20% instead of current 15% and 10% if the tax bracket is 15%.
* Dividends will be taxed as regular income. For 2013, I will distribute all my IRA and some of my wife's IRA.
* 175K AGI will make some deductibles not available. Could be ok with me as my major one is in state tax as I've no mortgage.