Warren Buffett thinks taxes are on the way up. Why selling stocks in advance may not be a good call

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Tax Planning,Investment Strategy,Berkshire Hathaway Inc

Preemptively trimming a stake in an appreciated stock may make sense for the billionaire investor's conglomerate, but may not be the best move for you.

Warren Buffett trimmed Berkshire Hathaway 's Apple stake, capturing gains ahead of an expected increase in taxes – but what worked for the legendary investor may not be the best move for individuals. The sale reduced the conglomerate's Apple holding by 13% in the first quarter. Buffett, speaking at Berkshire's annual meeting earlier this month, noted that he expected tax rates to rise but he didn't mind paying the 21% rate currently applicable to corporate income.

"Run the numbers and make sure it makes sense to do it – and do it thoughtfully – that goes for any tax strategy," Steffen said. Sensible steps for any climate You don't have to wait for cues from Washington to take a few steps that can improve your portfolio's tax efficiency and trim your tax bill. Here are a few moves worth considering. Manage your tax brackets . Long-term capital gains taxes have three tiers, depending on an investor's income: 0%, 15% and 20%.

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