Sale of Realty Income

I initially bought Realty Income back in July 2013 for $45 per share. I ended up selling all my shares today, taking a moderate capital loss. I will definitely be buying Realty Income again, hopefully, at similar depressed prices. Future purchases will end up in my Roth IRA account because Realty Income’s distributions are not a qualified dividend and are taxed at the current tax bracket.

This isn’t a super big deal now. However, while my distributions are still relatively small, I thought I’d move it into the tax protected Roth for the 2014 tax year. I wish I had room in my Roth now (or back in July) but, alas, I had already maxed out my Roth for the year. As soon as I can in 2014 I’ll repurchase Realty Income and be a net buyer of it on future drops. I hate to sell something that I was hoping to become a future major holding, but in the long run this should be for the best.

This means that I have quite a bit of free cash now. I’m hoping to make some purchases soon from my watchlist, but first want to see how the debt ceiling talks in Congress end up. Another nice correction would be welcome.

This sale will reduce my annual dividend by approximately $147.

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