Key insights
- An individual investor is considering selling appreciated stock positions before getting married to take advantage of lower single-filer tax brackets for long-term capital gains. The combined income post-marriage will likely push them into a higher tax bracket. The decision hinges on comparing potential tax liabilities under both filing statuses. While the investor suspects pre-wedding sales are advantageous, the complexity warrants professional tax advice.
Seven years of mostly index funds but also some individual stocks I have been holding long term. Some positions have appreciated significantly and I have been pretty careful about managing when I sell to stay within the 0% long term capital gains bracket.
Getting married in September. My fiance also works and has a solid income. Combined we are going to be in a completely different tax situation than I have been managing as a single filer and I am realizing I need to think about this before the wedding not after.
Specifically trying to understand if it makes sense to sell some of my appreciated positions before the wedding while I am still filing single or if waiting and filing jointly changes the math in a way I am not accounting for. My income alone keeps me just under the threshold for 0% long term capital gains. Combined income is going to push us well past it.
Ran some rough numbers and it looks like selling before the wedding might save a meaningful amount but I want to make sure I am not missing something obvious before I make any moves.
Is this something a regular CPA can help with or do I need someone who specifically understands this situation?