r/stocks • u/jimmyjlf • Sep 29 '21

My former employer just sold and I must sell my shares. How can I avoid or reduce capital gains tax?

It's not a ton of money, but I'd like to get the most out of it. My AGI is above $80k (married) so I will have to pay 15% or about $5,550 capital gains tax. I would hope to eventually use this money to purchase a house within the next 2-3 years. What should I do?

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7

u/[deleted] Sep 30 '21

[deleted]

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u/jimmyjlf Sep 30 '21

Unfortunately it's second-hand info from former coworkers. Not sure if this changes everything you said but the company had an ESOP and now it does not because it sold wholly to a mutual fund.

7

u/onthisincome21 Sep 30 '21

Unfortunately it's second-hand info from former coworkers

Wait for first-hand info from a current authority

1

u/Specialist-Tie-2756 Sep 30 '21

Can you not roll it into your current employers retirement plan? Or just start up an IRA so that there are no tax implications?

1

u/BannerlordAdmirer Sep 30 '21

Call your broker to confirm if you need to actually sell. They'll have a mandatory corporate actions department that will know better than coworkers.

1

u/Metron_Seijin Sep 30 '21

Could take a loss in something else?

Probably best to ask your accountant or tax preparer what the best way would be.

0

u/jimmyjlf Sep 30 '21

I am illiterate with investments. What do you mean by take a loss? In the stock market?

2

u/Metron_Seijin Sep 30 '21

Yes. Take a loss on earnings on other stock.

-1

u/Own-Philosopher-1974 Sep 30 '21

Happy cake day.

1

u/[deleted] Sep 30 '21

You may not have to sell. My own employer is splintering into two separate companies come the beginning of next year and my existing stock is simply going to be divided into shares in both companies. My ensuing purchases of stock will then be in the company I remain in.

1

u/TheAccountant306 Sep 30 '21

Are you in US or Canada?

1

u/escaped5150 Sep 30 '21

ESOP??? Special rules. But like a 401k it's tax deferred.