Set on selling stocks amid the coronavirus crisis? Consult this checklist first

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Selling stocks, mutual funds and other investments shouldn't be done as a knee-jerk reaction.

If you're selling mutual funds or other assets within a 401 plan, an Individual Retirement Account or another tax-sheltered vehicle, your sell decisions likely won't have any bearing on your tax situation. But in unsheltered brokerage accounts, there can be all sorts of repercussions.

"Check the holding period first, to be sure," said Matthew Kenigsberg, a Fidelity vice president for investment and tax solutions.When you lock in gains by selling, it can do more than just add to your taxable income. You also might lose eligibility for certain benefits like retirement accounts, lose deductions or push some of your Social Security payments into the taxable category.

 

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