Have just found out a sale is occurring of a company where I am a minority owner. I am fortunate to be seeing some high 6 figure capital gains. However This is decades earlier than expected so I am scrambling with how to reduce taxes.
Thoughts so far:
- tax loss harvesting. Have a few losses but market has been growing so much that I don’t have many opportunities and have used all the previous years banked.
- donor advised fund - have been using these for my normal charitable giving but didn’t see how this would reduce cap gains but maybe just reduce overall tax bill.
-529s - two young kids putting the max in each would save about $900 in taxes.
Anything I am missing ? There doesn’t seem to be many options.
How to reduce long term cap gains - business sale
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Re: How to reduce long term cap gains - business sale
Time to pay the taxman his due.
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Re: How to reduce long term cap gains - business sale
Just a thought
Close the deal in January, put all in TSM and if TSM tanks then tax loss harvest to off-set the gains from the sale of the business.
Close the deal in January, put all in TSM and if TSM tanks then tax loss harvest to off-set the gains from the sale of the business.
Re: How to reduce long term cap gains - business sale
Check out Qualified Opportunity Zones.