[USER]

Husband is looking to sell some Of his Tesla stock to diversify. They were stock options that was granted to him at work.

If he sells his stock and decided to put it on s&p 500 or vti vtsax, he will need to pay the taxes, right?

Are there any other ways to avoid or minimize the taxes due?

[Bethany]

Do you both have W2 jobs? If you don’t the. you can look into achieving REPS status.

[Steve]

So, he exercised the options and now owns stock? If it’s more than a year the gains are taxed lower.

If he had multiple grants at different strike prices, sell the highest cost basis lots first.

[Michael]

If you make charitable donations consider donating the stock. You’ll get the full value as a charitable deduction and never recognize the gains as income.

Or you can open you own donor advised fund at a brokerage like Fidelity or Schwab.

Donate the stock to that fund.

You get the tax deduction for the full value when you move the stock in there and then you can have the donor advised fund hold the stock until you’re ready to make the donation and distribute the funds at a later date or now if you want.

[Brad]

Sell off some dogs in the red for tax loss harvesting to offset these gains

[Shawn]

You could sell call options and use the premiums to protect your downside.

Consider an opportunity zone fund.

[Author]

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