#749 - How Do I Avoid Paying Taxes On Stock Gains?

The "Daily Call" From Option Alpha

Hey everyone. This is Kirk here again from Option Alpha and welcome back to the daily call. Today, we’re going to answer the question, “How do I avoid paying taxes on stock gains?” Well, the first way that you can avoid paying taxes or really, the only way that you can avoid paying taxes on stock gains is to never sell the stock position in the first place. This would then not trigger a long-term or short-term capital gain and therefore, would not actually trigger the capital gains tax. I know that Warren Buffett’s favorite holding period he has famously said is in many cases, forever. This is because he tries to avoid paying tax on these stock gains on a long-term maturity basis. That would be the only way to really do it. I know there’s a lot of other little nuance ways to do it that are probably out there. We probably won’t get into these in all the podcast, but things like opportunity zones, etcetera could be ways to avoid tax gains, but it’s going to be very localized, very specific and in many cases, you’re just rolling them over to another investment vehicle, so you’re not just liquidating the position and walking away from it. Hopefully this helps out. As always, if you guys have any questions, let me know and until next time, happy trading.