Sell or Hold with Short term stock gains

[Anonymous]

I have an additional $400K in short-term gains that I have been holding on to but I am worried that the gains will evaporate. But I also don't want to pay ordinary income tax of 37%. Any ideas as to what I can do?

[Anonymous]

Isn’t long term only 30 days?! I’d sell…I’m sitting on the opposite and planning when to sell to take advantage of reduced income

[Anonymous]

Anonymous wrote:Isn’t long term only 30 days?! I’d sell…I’m sitting on the opposite and planning when to sell to take advantage of reduced income

Long term is one year.

[Anonymous]

One year: https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-gains-taxes-brokerage-accounts-etc/L7KCu9etn

If you have GAINS of that much, that probably means you have millions in assets, so I would hold.

The only scenario in which I'd sell and pay the much higher taxes is if you had something that skyrocketed and now makes up a huge portion of your assets and means you have little diversification. For example, if you have $100,000 and invested $4000 in a single stock that increased by 100 time (10,000 percent), then sell, because it's very risky.

(And to be clear, if you invested $350,000 and now the asset is worth $400,000, you have only $50,000 in taxable gains.)

[Anonymous]

Anonymous wrote:One year: https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-gains-taxes-brokerage-accounts-etc/L7KCu9etn

If you have GAINS of that much, that probably means you have millions in assets, so I would hold.

The only scenario in which I'd sell and pay the much higher taxes is if you had something that skyrocketed and now makes up a huge portion of your assets and means you have little diversification. For example, if you have $100,000 and invested $4000 in a single stock that increased by 100 time (10,000 percent), then sell, because it's very risky.

(And to be clear, if you invested $350,000 and now the asset is worth $400,000, you have only $50,000 in taxable gains.)

I have little diversification. Got lucky, thanks.

[Anonymous]

Are you thinking there will be a crash before you can cash in on your gains at the longer term tax rate? I am. I mean I can see a massive sugar high with QE coming and then inflation and tariff related impacts catching up to us and just a recession.

[Anonymous]

Anonymous wrote:Are you thinking there will be a crash before you can cash in on your gains at the longer term tax rate? I am. I mean I can see a massive sugar high with QE coming and then inflation and tariff related impacts catching up to us and just a recession.

Yes worried that Trump will tweet something and come crashing down like it did for me a couple of months ago. I regained it all back so don't know what to do now.

[Anonymous]

Anonymous wrote:

Anonymous wrote:One year: https://turbotax.intuit.com/tax-tips/investments-and-taxes/guide-to-short-term-vs-long-term-capital-gains-taxes-brokerage-accounts-etc/L7KCu9etn

If you have GAINS of that much, that probably means you have millions in assets, so I would hold.

The only scenario in which I'd sell and pay the much higher taxes is if you had something that skyrocketed and now makes up a huge portion of your assets and means you have little diversification. For example, if you have $100,000 and invested $4000 in a single stock that increased by 100 time (10,000 percent), then sell, because it's very risky.

(And to be clear, if you invested $350,000 and now the asset is worth $400,000, you have only $50,000 in taxable gains.)

I have little diversification. Got lucky, thanks.

Then I would definitely use the gains to diversify. Once you have your investments allocated in a way you feel comfortable with, you can rebalance at regular intervals.

[Anonymous]

Sell half, pay the taxes. That will mitigate your risk.

[Anonymous]

Anonymous wrote:Isn’t long term only 30 days?! I’d sell…I’m sitting on the opposite and planning when to sell to take advantage of reduced income

Wow. If you think that a long-term capital gain starts in 30 days, then you know absolutely nothing about investing and need a professional stat.

[Anonymous]

What is it invested in?