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RPM International Inc. Message Board

  • the_millionaire_next_door the_millionaire_next_door Nov 7, 2006 12:52 PM Flag

    Idea / comments

    I'm pondering the idea of selling RPM for this reason:

    I know I'm going to be in the 15% bracket this year and LT gains would therefore be taxed at 5% for me. My profit would not be enough to bump me up to the 25% bracket. I would like to own it again, but by selling and buying back in just over a month, I could raise my cost basis significantly and pay minimal taxes. Then, if our newly elected legislature thinks it wise to undo the 5%/15% tax rate on LT gains and dividends I would be better off, because my cost basis is now reset.

    The downside is the stock takes off and I miss the appreciation. I'm thinking that's not terribly likely in 30+ days...

    disclaimer: not a real millionaire...

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    • The tax rate on capital gains and dividend income should stay constant thru 2009 and I beleive the Dems will not extend the lower tax rates past 2010, and allow them to revert back to the old tax rate laws giving us all a tax increase. What bothers me is what kind of Judges they install, and with RPM's asbestos situation, would be of some concern to me going forward. Enjoy the lower rates on dividend income and capital gains while they last.

      • 1 Reply to tracky1
      • We finally broke out of the teens with yesterday's close. How unfortunate that politics must be such a big factor in determining the future of our investments.

        At the risk of turning this board into a political chat-room, I'd like to ask how many of RPMs holders voted dem? I have never understood this tendency to cut off one's nose to spite one's face.

        I'm hoping that before the tax advantages on cap gains and dividends expire that the investor class comes to its senses.

    • I just realized my post didn't make much sense. For some reason I thought the wash rule applied to capital gains, too - but it doesn't. I could sell today and buy back tomorrow...

50.91+0.38(+0.75%)May 2 4:02 PMEDT