My spouse has a simple trust that was left to her that includes a Brokerage account, Traditional and Roth IRA. The trust's income consists of non-qualified dividends from the Brokerage account and RMDs from the IRAs. The brokerage account does NOT generate any capital gains. We determine the amount of income to distribute each year (DNI) to minimize total taxes.
Since the funds in the brokerage account have appreciated over the years, there will be long-term capital gains if/when sold. Given that these are the current Long-Term Capital Gains Trust Tax rates:
$0 – $3,000: 0%
$3,000 – $14,649: 15%
$14,650+: 20%
Is there any reason not to sell funds in the Brokerage account each year to realize $3,000 in long-term gains (or whatever the 0% top bracket is)? Then, simply reinvest the proceeds in the account? I just want to make sure there's no tax implications and that I'm not missing anything?
Thanks in advance for any input!
Since the funds in the brokerage account have appreciated over the years, there will be long-term capital gains if/when sold. Given that these are the current Long-Term Capital Gains Trust Tax rates:
$0 – $3,000: 0%
$3,000 – $14,649: 15%
$14,650+: 20%
Is there any reason not to sell funds in the Brokerage account each year to realize $3,000 in long-term gains (or whatever the 0% top bracket is)? Then, simply reinvest the proceeds in the account? I just want to make sure there's no tax implications and that I'm not missing anything?
Thanks in advance for any input!
Statistics: Posted by Postmon — Thu Dec 28, 2023 12:33 pm — Replies 0 — Views 27
