how do you avoid short term capital gains?

Question

If I sell some stocks that I just recieved from my company my understanding is that I have to pay short term capital gains. Is there any way to avoid this? Could I put the cash in some type of tax differed account or trust? The amount that I am talking about is high six to seven figure payout.

Thanks

Answer 1

You have to hold them for at least 1 year for them to be long-term capital gains. When you received the stocks from your company did they include the value of the stocks as part of your W-2 wages? If so then you have a cost basis for the stocks, and might find that your cost is more than the current value, in which case you have a loss. You could also donate the stocks to a charity and take a charitable deduction for the market value of the stock. But your best bet if you want to keep some of the cash from selling the stock, is to hold it for more than 1 year and then sell it.

Answer 2

If you receive cash at all, their is no way to avoid the tax.

Like others have said, you would need to hold the stocks for a year and a day to receive the lower long term capital gains rate.

Answer 3

Gain (or loss) is triggered when you sell. To avoid triggering it, don't sell.

ST vs. LT? If you hold the stock for less than a year, its ST, longer than a year, its LT.

Not sure what the complaint it about, its taxed at 15%, unless the stock is some sort of deferred comp, then you are probably getting whacked at ordinary income anyway.

Better answer: Spend some of the 6 to 7 figure income on a good tax planner.

Answer 4

Hold them for a year and pay long term capital gains.

Donate them to a charity and take the market value as a deduction.

Answer 5

you ought to hold the concepts for a three hundred and sixty 5 days or extra so that they qualify as long term helpful factors. you ought to sell different issues at a loss so as that your finished internet capital benefit for the three hundred and sixty 5 days is 0.