In so doing I will keep the partial shares, which would allow me to remain a share holder in both companies. Once I can again be an investor I would be able to build those shares. In addition, since I have partial shares the dividend reinvestment part of the plan will help rebuild them in the meantime.
The downside is an additional tax liability in addition to what I already owe the IRS (because of a stock sale). Would it really be wise to sell these for the $200?
What do you all think? Let me hear your opinions.
It fully depends on how much your tax liability will be. Even if you just estimate, will the profit you get off the shares be more than the commission + the liability? And if it is, will it be worth it enough to you to sell at this time?
ReplyDeleteThe sell of the 2 stocks will be about $200 and my current IRS liability is about $3,000.
ReplyDeleteit depends on how much interest you're paying on debt. i really doubt the stock will appreciate more than the debt! i bet your capital appreciation tax rate is 10% and your dividend rate is 5%. so what's the rate on the debt you'd be paying off? 20%? unless you have reason to believe the stock will appreciate more than 20% in the next year, sell it and pay the debt. you can keep aside about 10% of the proceeds (sell value minus buy value) to cover the taxes for it. paying debt is a great investment, unless the RATE is less than what you can earn in the market. (yep, I still have debt at 0%, on money earning 4.5%.)
ReplyDelete