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Shondra, single and 98, comes to you on December 10, 2023. She says she would like to sell some of the following stocks to generate
Shondra, single and 98, comes to you on December 10, 2023. She says she would like to sell some of the following stocks to generate cash, because she thinks this might be her last holiday season and she is wanting it to be a HUGE BLOWOUT for all her family and friends. She would like to sell 3 of the 4 stocks below for the holidays and wants to receive at least $150,000 cash when it is done. Then she would like to sell the remaining stock in late January to free up some cash for Valentine's Day presents too. Stock Holding Period Basis FMV Tesla 10 months 10,000 50,000 Rivian 2 months 115,000 60,000 Polestar 5 years 25,000 60,000 Lucid 8 years 20,000 70,000 Assume that she is in the 35% ordinary tax bracket and will continue to be no matter what is sold. Also assume that her preferential rate would be 15%. She does not care which 3 stocks are sold for the holidays and which stock is left for Valentine's Day, as long as she ends with $150,000 or more for the holidays. What is your advice? What if Shondra says she is really attached to the
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