Key insights
- The post discusses estimating capital gains taxes on a fund sale. The user is considering a 'worst-case' estimate of 15% of the total sale value. While conservative, this approach doesn't account for potential deductions or tax-advantaged strategies. The lack of cost basis information makes precise calculation difficult. This has a slightly negative influence as it highlights investor uncertainty regarding tax implications, potentially leading to delayed investment decisions.
I own a bit over $22k of NPRTX and am looking to sell to reallocate the money into a better fund for dividends.
I bought the shares years and years ago with DRIP on and do not have the information for the cost basis of the shares owned.
I am trying best to estimate the worst case scenario of what I would owe and figured it best just to do 15% of the total $22k lot, which would be $3.3k.
Is there anything I am missing with this, or would this be a valid “worst case” estimate for taxes, knowing with my initial investment 20+ years ago it will probably be a bit less.