Author Topic: Capital Gains - best place to put the gains  (Read 485 times)

lifeplus

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Capital Gains - best place to put the gains
« on: January 25, 2019, 03:31:10 PM »
I will be selling a property this year and was curious where all of you smart FIers put your gains to optimized returns? Thanks in advance.

walkwalkwalk

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Re: Capital Gains - best place to put the gains
« Reply #1 on: January 25, 2019, 09:02:30 PM »
1. Save some for IRS.
2. Do whatever your IPS says. https://www.investopedia.com/terms/i/ips.asp

lifeplus

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Re: Capital Gains - best place to put the gains
« Reply #2 on: January 25, 2019, 10:25:38 PM »
Hmmm, so work with a portfolio manager? Is that what others are doing in the FI community? I haven't heard about this as a strategy people use as it seems the FI strategy is to keep it simple and manage it yourself.

Any other strategies FIers are using to maximize gains? Thanks.
« Last Edit: January 26, 2019, 08:57:26 AM by lifeplus »

waltworks

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Re: Capital Gains - best place to put the gains
« Reply #3 on: January 26, 2019, 09:57:42 AM »
Well, if you want to not pay the capital gains tax at all (or at least defer it a while), you can do a 1031 exchange into another property.

Otherwise, you should invest the money however you are already investing your money, as walkwalkwalk says. I'm not sure where you came up with the portfolio manager thing, but most people here would recommend against that. Make yourself an IPS and stick to it.

-W

walkwalkwalk

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Re: Capital Gains - best place to put the gains
« Reply #4 on: January 26, 2019, 04:49:41 PM »
To be fair, I didn't read the link I posted, so in reading it, you would be your own fund manager.

lifeplus

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Re: Capital Gains - best place to put the gains
« Reply #5 on: January 27, 2019, 08:57:41 PM »
Yup, got it now regarding IPS. I read another post from today that got deep into this. I understand what this is now. Thanks for the nudge on that. Also much appreciated for not making someone new to all this feel lame. Everyone here has been exceptional.

Yes, I'm very familiar with 1031 Exchanges. A chunk of my net worth is in my home so I'm looking at how to simplify this; i.e. move to a smipler place and am strategizing about what to do with the rest. IPS time :)

waltworks

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Re: Capital Gains - best place to put the gains
« Reply #6 on: January 27, 2019, 09:33:33 PM »
Wait, is this your residence? If so, barring some unusual circumstances (you just moved in 8 months ago, it's worth $3 million and you bought it for $500k, you rented half of it out to traveling death metal bands for the last 20 years, etc), you won't owe any capital gains.

-W