Knowing when to sell an asset is a difficult part of investing. Reasons for selling a stock, bond, or mutual fund may include:
- Rebalancing a portfolio
- Profit taking
- Stopping further losses
- A higher potential rate of return on an alternate investment
- Cash needed for expenses
The tax consequences may be the most important part of your decision. Short-term gains are taxed at your highest marginal income tax rate, while long-term gains are taxed at lower long-term capital gains rates.
The calculator will estimate potential capital gains taxes. If you have owned the investment for 12 months or less, capital gains are considered Short-Term. If you have owned the investment for more than 12 months, capital gains are considered Long-Term.
