The Clock is Ticking: Year-end Planning Tips

Planning now for April 15th can save you money on taxes later!

*Minimize Tax on Capital Gains. Generally, when you sell stock or mutual fund shares, the shares you purchased first are considered sold first.  That’s usually good news since it’s often beneficial to qualify for the long-term capital gain rate by selling shares that have been held more than one year.  If you are selling less than your entire holding of a specific stock or mutual fund, there may be situations where you’re better off selling shares other than those that have been held the longest.  For example, the newer shares may have a higher cost-basis (because you paid a higher price for them) which would result in a smaller taxable gain or even a loss.  When you want to sell shares other than those you purchased first, you must properly notify your broker as to the specific shares you want sold.

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Questions? Feel free to contact us at 802.878.1963.  Davis & Hodgdon Associates has been assisting individuals and businesses in the Burlington Vermont Metro area for more than 20 years. If you have any questions or concerns please feel free to call 802.878.1963 or email [email protected].

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