The primary consideration for the Net Unrealized Appreciation (NUA) strategy is having a highly appreciated stock position.
Remember, your basis in the stock is taxed at ordinary income rates. If your stock position isn’t highly appreciated, it means a large portion of the stock value is basis that won’t be eligible for the more favorable capital gains rates.
It should be noted that highly appreciated is subjective. There isn’t a specific amount of appreciation that indicates an ideal scenario. Instead, it is based on each person’s unique tax and financial situation at the time.