Message Font: Serif | Sans-Serif
No. of Recommendations: 0
To be conservative, I'd take that total income from the sale and consider it all to be ordinary and apply your marginal tax rate to that

I still think it is a 2 part process: the 20% tax gain on long term kicks in so price sold - cost = proceeds * 20% = first tax amount.

part 2 is the gain in capital:

the figures I got for tax year 2013 came from schedule k-1 (IRS form 1065 turbo tax).

(part II section L: ending capital account) -/+ (section A passive activity adjustment to income or loss)= proceeds * 33% = 2nd tax amount.

part 3: total estimated tax

add part one 20% total tax to part two 33% tax = total estimated taxes.

Part 4: year 2014 taxes on income from sold LP still an unknown till I get the gain or loss for the pass through.

I think that will be a little more but will be hard to determine till I get this years K1 but at least I got some kind of ball park of taxes.

interesting enough if I take all my income sense buying the LP, add it to the profit of the stock less the loss suspended for current year 2013 from section A. I get just about the same amount in taxes.
Print the post  


In accordance with IRS Circular 230, you cannot use the contents of any post on The Motley Fool's message boards to avoid tax-related penalties under the Internal Revenue Code or applicable state or local tax law provisions.
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.
Contact Us
Contact Customer Service and other Fool departments here.
Work for Fools?
Winner of the Washingtonian great places to work, and Glassdoor #1 Company to Work For 2015! 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.