Quote:
Originally Posted by manaboutown
Warren Buffett has been selling large amounts of AAPL and BAC stock from the BRK portfolio. No doubt one reason is to lock in gains while the market remains overpriced as well as rebalance the BRK portfolio which at one time was over 50% AAPL but I feel an additional reason is that he sees LTCG tax rates substantially increasing by 2026. So do I.
As an aside he has built up quite a war chest to buy when the time is right IMHO.
Thoughts?
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I have been reading a little about this, but a lot of articles have panic-stoking headlines and some writers have an agenda that is pretty transparent by the angle they take and what information gets buried.
From what I can decipher, the proposed long-term capital gains tax rate increase would be on those with incomes of a million dollars a year. (That's annual income not net worth.) That other thing about unrealized gains looks like it applies to those sitting on a hundred million. But I have yet to find what is being said about us peasants who might want to sell some shares at the usual 15% (or less) rate.
I think a lot of regular people are thinking about this anyway just because the market is so high, but they don't want to sell because of the tax hit. Some, if on the older end and if they have more than they ever will need, might decide to give an early inheritance or donate shares to charity, and not pay any capital gains themselves and get to see the money used. Decisions like this are what my old, favorite accountant used to call trying to free your money from its prison.
Well, I do not make a million a year, and I am sure not sitting on a hundred million, and as far as I can find out, that's who this capital gains tax increase would hit.
Bottom line, it would never get through congress anyway to hit regular investors that hard because that would affect a lot of them, across the aisle, too.
Boomer (not too worried)