Tax planning when selling one stock to buy another stock?

When you sell a stock to buy another stock, do you prefer to set the estimated amount of the capital gains taxes aside in a money market or do you think it better to invest the full amount in the new stock and sell off some of it to cover the tax bill when it comes due?

Seems like it is a decision between the safety of knowing you have the liquidity (if things go down) versus having your money work for you more during the year (if things go up).

What are the pros and cons of each? Which do you prefer?

submitted by /u/counterpointguy
[link] [comments] https://www.reddit.com/r/stocks/comments/17afj07/tax_planning_when_selling_one_stock_to_buy/
Vytvořeno 6mo | 18. 10. 2023 6:20:11


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