Q: I am in my 80’s and have a cumulative capital gain over $600,000 in about 30 companies split evenly between U.S.andCanada.
To avoid paying the higher inclusion rate should I sell some of these stocks now and purchase them back at a later date bearing in mind stock and currency rates fluctuate.
To avoid paying the higher inclusion rate should I sell some of these stocks now and purchase them back at a later date bearing in mind stock and currency rates fluctuate.
5i Research Answer:
We can't provide personal tax advice and there is a lot of decisions involved in such a plan. Selling and paying taxes of course means less money will be compounding over future years. Timeframe becomes important. The inclusion rate might also be reversed back by a new government. Investors also need to look at estate planning, as 'deemed' sales and taxes will apply at death. We are in similar circumstances, though younger. We plan to crystalize 'some' capital gains for some tax benefits and diversification purposes, likely in the 20% range of what could be sold.