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I'm a Financial Planner: This Is How Your Kids' Low Tax Bracket Can Wipe Out Your Capital Gains

Latest from Kiplinger ·Evan T. Beach, CFP®, AWMA®·3 days ago
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(Image credit: Getty Images) If you filed your taxes last month, you know the pain of capital gains is real and often a surprise come April. I recently wrote two surprisingly long and complicated columns on strategies to minimize the tax hit that comes when you press the "sell" button on an appreciated stock. In one of those columns , I talked about the "gift up" strategy, which is incredibly effective if executed properly. Short version: You give assets, typically to your parents, and when they pass, they (as long as all goes according to plan and you follow the rules) pass them back to you with a step-up in basis . From just $107.88 $24.99 for Kiplinger Personal Finance Become a smarter, better informed investor. Subscribe from just $107.88 $24.99, plus get up to 4 Special Issues CLICK FOR FREE ISSUE Sign up for Kiplinger’s Free Newsletters Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.…

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