14 Ways To Avoid Paying Capital Gains
http://www3.forbes.com/business/14-ways-to-avoid-paying-capital-gains/?utm_campaign=Avoid-Capital-Gains&utm_source=yahoo-gemini&utm_medium=Referral
The capital gains tax is economically senseless. The tax traps wealth in an investment vehicle requiring special techniques to free the capital without penalty.
Multiple ways are available to avoid the tax, but none are beneficial to the economy. Here are 14 of the loopholes the government’s gain tax unintentionally incentivizes.
14. Wait until you die
13. Buy and hold
12. Gift to charity
11. Move to a lower tax bracket state
California has the highest U.S. capital gains rate and the second highest internationally, with a top rate of 37.1%.
10. Give stocks to family members
8. Roth IRA and 401k
1. Match losses
Investors can realize losses to offset and cancel their gains for a particular year. Savvy investors harvest capital losses as they occur and then use them on current and future taxes. Up to $3,000 of excess losses not used to cancel gains can offset ordinary income. The remainder of the loss can be stored and carried forward indefinitely.
This encourages investors to sell great investment vehicles during a temporary dip only to buy them back again 30 days later for a new cost basis.
Mad Poet Strikes Again.
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