In a cash account, I have ~$300,000 of BND, this represents about 7% of my taxable portfolio.
I live in CA, and I am in the top tax bracket for both fed and state. I'm thinking of selling BND and buying muni bonds to net more return after taxes. I am comfortable with my current mix of stocks and bonds/cash, so I don't want to buy more stock.
The rub is I have about $15,000 in long term capital gains that I would pay 20% plus 12% state tax on. Is it worth it to switch? Is there a calculator out there that can give me the breakeven holding period?
I don't expect to be in a lower tax bracket until 2027, and even then I will still be 27% federal.
Thanks.
I live in CA, and I am in the top tax bracket for both fed and state. I'm thinking of selling BND and buying muni bonds to net more return after taxes. I am comfortable with my current mix of stocks and bonds/cash, so I don't want to buy more stock.
The rub is I have about $15,000 in long term capital gains that I would pay 20% plus 12% state tax on. Is it worth it to switch? Is there a calculator out there that can give me the breakeven holding period?
I don't expect to be in a lower tax bracket until 2027, and even then I will still be 27% federal.
Thanks.
Statistics: Posted by misterjohnny — Thu Nov 14, 2024 5:20 pm — Replies 0 — Views 243