then you have to be more careful than if you owned the individual stocks in an IRA. In an IRA you can exchange individual stocks for funds and there's no tax impact. But in a taxable account, any individual stocks you sell that have increased in value from when originally purchased will create a capital gain and result in capital gains taxes.-I have most of my investment in taxable accounts (individual stock)
so you should look very carefully at all the lots you own for all individual stocks you own and whether there are gains, losses (or both) and whether the losses and gains are short term or long term.
First sell anything with losses regardless of short or long. Then you can sell other shares that have gains in an equal amount if you want to zero out the tax impact.
After that if there are only gains, you'll have to determine how much tax you want to pay each year, i.e., how much do you want to sell (and exchange for funds) and over what amount of time (years) do you plan to convert all individual stocks to funds.
depending on the number of holdings and lots purchased, you could list the info here to get more specific advise as to what to sell first and why.
if the process is going to take you more than a year, I'd make sure you direct any dividends the individual stocks are throwing off to settlement fund, rather than reinvesting to buy more shares, if you haven't already.
also if you haven't already, set your cost basis to SpecID to make it easier to determine what shares to sell first, etc.
welcome to the group.
Statistics: Posted by arcticpineapplecorp. — Sat Aug 17, 2024 8:37 pm — Replies 8 — Views 766