Author Topic: Avoiding Capital Gains  (Read 243 times)

SpaceGhost

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Avoiding Capital Gains
« on: August 08, 2018, 04:13:31 PM »
After hearing that TSLA may go back private, how can one avoid capital gains taxes?  I have owned shares since 2013 so profit would be considerable.  If and when this happens, can one shift profits to a 401K or is there a legal means to postpone or avoid cap gains altogether?  The shares were purchased through brokerage account not attached to any retirement account.

Thanks in advance!

nereo

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Re: Avoiding Capital Gains
« Reply #1 on: August 08, 2018, 05:48:03 PM »
After hearing that TSLA may go back private, how can one avoid capital gains taxes? I have owned shares since 2013 so profit would be considerable.  If and when this happens, can one shift profits to a 401K or is there a legal means to postpone or avoid cap gains altogether?  The shares were purchased through brokerage account not attached to any retirement account.

Thanks in advance!
You can't - at least not legally.   There's no way of 'converting' gains from a taxable account to a 401(k) - that's kinda in the name 'taxable'. Since you've held it for > 1 year they will be LTCG (which is something at least).
Count your stars lucky that you've realized sizable market gains. Best you can do is limit your AGI for this year, but that's not very practical for most.

FWIW I wouldn't worry too much about Tesla actually going private.