Quote:
Originally Posted by GregWeld
Don't take this post personally -- I just wanted to respond because there are so many people reading this stuff... and we don't want to give some info that might be right for some and wrong for others...
Really - that's not enough information - because we don't know if he's asking about an IRA - a ROTH - or just a regular account.... We don't even know if there are LTCG taxes due because his income might not be high enough to pay ANY... there are ZERO LTCG taxes for some folks... and for some of us there is the AMT and all manor of other mitigating circumstances. That's why I didn't want to give him some "pat" answer. Because it "depends". Maybe all his gain is from reinvested dividends that he's already paid taxes on?
That's why I said his questions can really only be answered by HIS tax pro...
I think questions like this are GREAT because they give people information they should at least think about etc -- but can't be answered in a forum. And they're just as critical as the timing on an engine - which we know there is no pat answer because it depends on the cam - the gears - the use - and blah blah blah... What you really need to know is that it's critical to find out BEFORE you act - so you can form a PLAN.... and act accordingly.
By the way folks -- note that when I say LTCG are ONE YEAR AND A DAY -- that "DAY" is critical because the IRS rule is "longer than one year" -- which doesn't mean ONE YEAR -- it's LONGER THAN ONE YEAR. Thus I always add that "one year and a DAY". The devil is always in the details.
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Great points Greg, taxes totally depend each person's set of circumstances.
