I've hesitated to post on the following issue because I have been anticipating a change in tax law since it was addressed by the media. But, to date, it does not look like anything will change in the near term.
The issue, the capital gains tax rate.
Next year, if your marginal tax rate is 0%, you will have any capital gains will be taxed at a 0% rate. This is an ideal situation for people with children in college who have little earned income.
A good strategy is to gift your child shares of appreciated stock and sell the stock in their name. Since they may be in the 0% bracket, you may be able to elude any capital gains tax on the transactions.
To date, Congress has not closed this loophole, but look for them to do so in the future.
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