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

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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Source: CNBC - 🏆 12. / 72 Read more »