Financial Focus: How to handle capital gains

12:32 PM, Jan 17, 2019

COLORADO SPRINGS – The United States has been in a bull market for about 10 years which means it’s continued to charge ahead.

If you’ve owned stocks since then, your money should have increased quite a bit.

Our partner at Carlson Financial explained how to handle these big capital gains.

Carl Carlson, CEO of Carlson Financial, said, “If you’ve had money in the stock market since 2009 then your money has increased greatly.”

Carlson said it’s time to start thinking about what to do with big gains you’ve made in this current bull market.

“You now are in a position where you have to start deciding is it time maybe to take a little bit of those gains off the table?”

He said you might not want to sell just yet as the market is slightly down. When it comes back up, as he believes it will, be aware of the tax implications you could face.

“You could have a pretty sizable capital gains tax looming the next year. If you sell them in this year that tax is going to be due next year so you need to make sure if you’re selling that you set some money aside to pay the tax.”

One suggestion is to wait until a stock is down and sell it when you don’t have to pay a tax. You can also sell some of your stocks that have losses in them.

Carlson said another route is to “donate those highly appreciated stocks so give those to a charity and they can sell them and get the nice high value.”

He said if you do this you’ll get that value as a write-off.

While there may be some risks with selling Carlson said you shouldn’t be too concerned about taking that profit and paying that tax because in the end you are taking a profit.

Carlson Financial is a sponsor of Financial Focus.

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