[Topic is now in Personal Finance (Not Investing) - mod mkc]
I have a small business and end the year somewhere in the QBI deduction phaseout but have a sizable QBI deduction.
I also have a lot of capital gains that I would like to realize to reduce exposure, or at least to certain individual stocks. Presently there are no more losses to realize.
My understanding is that capital gains push up taxable income for the purposes of the QBI deduction. (But it's hard to find clear discussion of this, can anyone confirm?)
If I'm doing this right, the phaseout causes a pretty hefty tax increase when say 100k of gains are realized.
My question is - is there a way to reduce stock exposure but not eliminate/reduce the QBI deduction?
I have a small business and end the year somewhere in the QBI deduction phaseout but have a sizable QBI deduction.
I also have a lot of capital gains that I would like to realize to reduce exposure, or at least to certain individual stocks. Presently there are no more losses to realize.
My understanding is that capital gains push up taxable income for the purposes of the QBI deduction. (But it's hard to find clear discussion of this, can anyone confirm?)
If I'm doing this right, the phaseout causes a pretty hefty tax increase when say 100k of gains are realized.
My question is - is there a way to reduce stock exposure but not eliminate/reduce the QBI deduction?
Statistics: Posted by tortoiseinvestor — Thu May 23, 2024 11:50 am — Replies 2 — Views 193