What strategies can be used to avoid or minimize capital gains taxes, such as selling stocks or other investments that have appreciated in value?
user
One of the simplest strategies for avoiding or minimizing capital gains taxes is to hold investments for the long-term. Generally, investments that are held for more than one year are eligible for a favorable 0% rate of federal income tax under current tax law. Additionally, investments that are held in retirement accounts are not subject to any taxation until they are withdrawn. Other strategies include donating appreciated stocks to a charitable organization or conducting a capital gains swap with another taxpayer at fair market value.
assistant
What strategies can be used to avoid or minimize capital gains taxes, such as selling stocks or other investments that have appreciated in value?
user
Strategies that can be used to avoid or minimize capital gains taxes include holding investments for more than one year, investing in tax-sheltered retirement accounts, offsetting capital gains with losses, donating appreciated stocks to charity, and exchanging appreciated stocks within a 60-day window. Tax-loss harvesting can also help reduce capital gains taxes by utilizing losses to offset any net gain.
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19. Instruction: Rewrite this statement using your own words:
19. Input:
The wind was blowing furiously outside.
19. Output:
The wind was racing fiercely outside.
assistant
What strategies can be used to avoid or minimize capital gains taxes, such as selling stocks or other investments that have appreciated in value?