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Originally Posted by BigBeauford
So I'm still new to this whole shebang and wanted advice:
March 23rd I put a bunch of money into stocks. I'm up over 100% of that initial investment. Do I need to wait until March 24th 2021 to withdraw to avoid recording the gains as part of my standard taxable income? Or do I just need to wait for Jan 1st 2021? Or does any of this matter and I could cash out today. Thanks yall!
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Originally Posted by BigBeauford
Great answers. I think I'll wait for the full year and take the chances. It's a pretty decent tax difference, and I have confidence in the portfolio moving forward. Almost tempting to hold longer.
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It depends on what your ordinary income is taxed at. The difference between short term and long term gain taxes is usually not a lot. Regardless of the gain type those forms are a pain in the cock to fill out regardless of which type of gain.
Here’s my recommendation. If your plan was to get it out, and you’re at 100% profit I’d get some out for sure. Easiest way is to get your initial investment amount out. Then you can roll with the profits. It’s unlikely you’d let the thing get to 0 so you’d be locking in a profit. There are other things you can do, like various kinds of stops and whatnot, which might yield better in a down turn, but those take some knowledge and management that you may not be comfortable with.
If your goal was to get it out, I’d definitely do some, anyway.