Capital Gains Taxes  

Knowing when to sell an asset is a difficult part of investing. Reasons for selling a stock, bond, or mutual fund may include:

  • Rebalancing a portfolio
  • Profit taking
  • Stopping further losses
  • A higher potential rate of return on an alternate investment
  • Cash needed for expenses

The tax consequences may be the most important part of your decision. Short-term gains are taxed at your highest marginal income tax rate, while long-term gains are taxed at lower long-term capital gains rates.

The calculator will estimate potential capital gains taxes. If you have owned the investment for 12 months or less, capital gains are considered Short-Term. If you have owned the investment for more than 12 months, capital gains are considered Long-Term.

     

What is the current value of the investment being considered for sale?

$

What is your cost basis? (What did you initially pay for the investment?)

$

What is your federal marginal income tax bracket?

Have you owned this investment for longer than 12 months?

YesNo
 
   
   
Pearman & Company - Comprehensive Fee-Based Financial Planning and Investment Management.
4524 Old Cave Spring Road • Roanoke, VA • 24018
Phone: 540-206-3074 • Fax: 540-301-0829
• pearmanco@roacoxmail.com

Registered Representative, Securities offered through Cambridge Investment Research, Inc., a Broker/Dealer, Member FINRA/SIPC.

Investment Advisor Representative, Cambridge Investment Research Advisors, Inc., A Registered Investment Advisor.
Cambridge and Pearman & Co. are not affiliated.
 
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