Golfer68ParticipantStatus: PhysicianPosts: 60Joined: 02/08/2017
Due to selling house on left coast for 600k+ in profit (single, only $250k free of capial gains free) owe $108k in taxes for 2018. Retired, pension and SS income will combine for $40k in 2019. Have RMD of $22k this year so that leaves us in the $62k tax bracket (22% income tax, 20% short term gapital gains) and with $86k needed to be withdrawn to add up to $108.
Below are our options from our taxable account (imagine it doesn’t make sense to take out of IRA and pay income tax):
-VTBLX $205k total, $5k of which is short gains
-VTABX $137k total, $2.5 of which is short gains
-VTMGX $168k total, $15k of which is short gains
-VEMAX $31k total, $4k of which is short gains
-VTCLX $340 total, $41k of which is long gainsMarch 13, 2019 at 4:39 pm MST #198247KambanParticipantStatus: PhysicianPosts: 2061Joined: 08/01/2016
I am very confused by the whole thing.
When you sold the house you made a 600K profit. You must have known that after the $250K CG tax free you will have to pay taxes on the $350K gain. Did you not put aside $150K or so from the sale in short term money market / bonds to pay that tax?
P.S. Reading second time it appears you invested all the gains. In which case use the LTCG fund.Faithful StewardParticipantStatus: Financial Advisor, Small Business OwnerPosts: 267Joined: 06/12/2017
You need to sell shares of VTCLX. selling the shares of the finds with only short-term gains will exacerbate your tax problem even more than selling the fund with long-term gains.
Michael Peterson, CFP® | Faithful Steward Wealth Advisors
http://www.fswealthadvisors.com | (717) 496-0900March 14, 2019 at 2:19 am MST #198335