Burwood is on Reading's balance sheet for only $ 47MM, and represents
the largest unrealized gain of any of Reading's eight major undeveloped parcels, which together comprise 130 acres, have a gross book value of $ 70MM and don't presently contribute to EBITDA.
This means that the short SPY trades often have
large unrealized gains before they are exited at the close.
So if there's
a large unrealized gain, it might make sense to sell the fund gradually over two or three calendar years to spread out the tax bill.
Not exact matches
But, if you are going to make a donation anyway, especially a
large one, giving crypto where you have a big
unrealized / untaxed
gain is a very efficient way of doing so.
Many cottages were purchased years ago and have
large unrealized capital
gains.
In summary, where there is a
large unrealized capital
gain on a family cottage, there will be no income tax panacea.
But Remy is investing in a non-registered account, and if he's held his stocks and mutual funds for several years, he's probably sitting on
large unrealized capital
gains, so selling these securities would result in a significant tax bill.
For example, an investor may own 100 shares of Apple stock and be sitting on a
large unrealized capital
gain.
«After the last few years, many older ETFs have
large unrealized capital
gains,» he says.
So highly appreciated assets with
large unrealized capital
gains that are transferred at death can be sold by the beneficiaries shortly afterwards with minimal income tax impact.
This assumes that all impacts to book value run through earnings which is not the case given Berkshire's
large balance of
unrealized capital
gains which are not recognized in earnings each year but flow into book value.
Another thing that's a
large benefit for shareholders: Markel currently has $ 1.7 billion of
unrealized gains in their equity portfolio.