Capital Gains Taxation

Capital gains provide an excellent opportunity for proactive tax planning due to a variety of minimization/tax elimination strategies available in the tax code. In cases where you must simply pay tax, it also makes sense to hire a CPA/accounting professional to help you compute and plan for the tax bill.

Capital gains are a common situation for our client base & may result from:

• Equity compensation, vested shares, RSUs, etc.
• Sale of a primary residence or rental property
• Liquidation of stock portfolio or inherited assets
• Sale of business interest or sale of entire company

For these types of situations, we are frequently approached with the following questions:

• How much tax should I set aside for this proposed situation (planning)?
• Are there any tax-saving strategies for me available for me to limit my capital gains?
• Can I use tax-loss harvesting techniques to optimize my tax obligation?
• Can you assist with filing my annual tax return?
• Should I make estimated tax payments, and if so, how much?
• How are state taxes computed?
• Are there better tax outcomes if I wait?
• If I am selling a rental property, how is depreciation recapture accounted for?
• If I am selling inherited assets, what is my “cost basis?”
• Can I construct a plan for more than one year of equity vesting, exercises, and sales?

These (and more) are all common scenarios that we compute for our clients.

Contact us at hello@dimovtax.com if you would like to get started with an analysis, tax return, or to book a consultation with a CPA/senior accountant to discuss strategy.