UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next
Author: Bob78164 Big red star, 1000 posts Old School Fool CAPS All Star Add to my Favorite Fools Ignore this person (you won't see their posts anymore) Number: of 76235  
Subject: Re: inherited stock Date: 12/4/1999 11:23 AM
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Recommendations: 0
GeorgeneHD writes:

When you inherit stock from your parent, after their death, what is the percent of capital gains that you pay, if you sell it, immediately?

I reply:

As has been noted, you receive a step-up in basis, so it's likely that you will have virtually no gains, and therefore no taxes. However, if you do have gains (or losses), they are automatically taxed as long term gains (or losses), even if your parent bought the stock the day before he or she died and you sell the stock the day you receive it. I.R.C. § 1. The tax rate for long term gains is 20% (only on the gains, not on the whole proceeds of the sale), except for low-income taxpayers, for whom the rate is 10%. --Bob
Post New | Post Reply | Reply Later | Create Poll Report this Post | Recommend it!
Print the post  
UnThreaded | Threaded | Whole Thread (7) | Ignore Thread Prev | Next


The Retire Early Home Page
Discussion on accelerating retirement day.
Pencils of Promise - Back to School Drive
"Pencils of Promise works with communities across the globe to build schools and create programs that provide education opportunities for children."
Post of the Day:
Macro Economics

Heads Up, Real Estate Investors
What was Your Dumbest Investment?
Share it with us -- and learn from others' stories of flubs.
When Life Gives You Lemons
We all have had hardships and made poor decisions. The important thing is how we respond and grow. Read the story of a Fool who started from nothing, and looks to gain everything.
Community Home
Speak Your Mind, Start Your Blog, Rate Your Stocks

Community Team Fools - who are those TMF's?
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and "#1 Media Company to Work For" (BusinessInsider 2011)! Have access to all of TMF's online and email products for FREE, and be paid for your contributions to TMF! Click the link and start your Fool career.