No. of Recommendations: 1
I am in the process of buying a house, and as a result i need to sell a lot of stocks. The problem is 70% of my taxable accounts is Brk and 100% of my IRAs is Brk. I have roughly equal $amounts in both type accounts. The brks in either type of accounts have unrealized capital gains of between 130-180% percent.
Then this hits me: Won’t it be more efficient if I sell my stocks in the IRA instead of selling from the taxable accounts? If I sell from IRA, i need to pay 10% penalty + income taxes, but I won’t have to pay capital gains tax. That means, if the unrealized capital gain % is sufficiently large, I might get more after tax+penalty dollars for selling the same amount of stock if I sell my IRA?
What you guys think?
