changes to the tax code
Hi, Terry have watched you for a long time on WGN. My daughter is halfway thru her Junior year of college. I had planned to sell stock upon graduating in May 2019, to payoff her Stafford and our parental student loans. We currently claim her as a dependent and itemize deductions. With the looming changes to the tax code, and the desire to offset as much of the capital gains as possible, would it better to A:)sell enough this year to pay for it all and hold the excess in a short term CD or something similar, B:)sell just enough to pay what we currently owe, C:)wait until graduation? Thank you for any advice you can offer, Hart & Lorrie Roberts
Terry Says
It's not potential changes in the tax code that make the big difference here. It's market timing! You could wait to sell -- and if the market tanks you will certainly have smaller tax problems! On the other hand, if the market keeps rising, you could miss out on some gains. I think that's the real issue, since we have no idea what the final bill will hold. You could continue deducting your daughter as a dependent as long as you provide more than half of her support -- likely the case in the year she graduates. And you could continue to itemize, depending on your personal situation. But the real question here is when you should sell. And I can't advise you on that!
