Personal Investments • Tax Hit from switching to Simpler Portfolio

Exactly, and if you are charitably inclined, donate shares from your taxable account.

this. And to the OP if you leave this taxable account to heirs, tell them to simply the portfolio (show them how) after they benefit from the step up in basis (if it remains). They won't have to worry about the tax hit as a result of change, and neither will you have.

I had not really thought about what happens when I leave money to heirs yet - I figured I would think about that when I was old enough to make withdrawals from retirement accounts. Your point makes a lot of sense! Part of my decision was based on the fact that the taxes would eventually have to be paid anyway - but that may not be the case if the step up in basis remains.

Statistics: Posted by Bpet10 — Mon Nov 11, 2024 4:23 am — Replies 15 — Views 1179

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