Question
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Jan 31, 2006, 06:43 PM
| | New Member  | | Join Date: Jan 2006
Posts: 4
| | | Cashed in Stock And taxes
I inherited some stocks from my father when he passed away. I cashed some of them in last year, and was wondering about how the amount of money I received was taxed. Is the whole gross amount taxed as income? Or is there another way that the amount is taxed?
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Answers
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Jan 31, 2006, 06:58 PM
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#2
| | | Senior Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 13,323
| Cori76:
You do not pay taxes on the gross proceeds. You have to determine the capital gains.
The basis of the stock is stepped up to the price of the stock the day your father died (or exactly six months after your father died; it depends on how your father's estate decided to treat the stock).
You must pay capital gains taxes on the difference between the stepped-up basis and what you sold the stock for. |
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Jan 31, 2006, 10:12 PM
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#3
| | New Member
Join Date: Jan 2006
Posts: 4
| I believe, but am not totally sure right off hand, that the value of the stock might have decreased since that time. What happens then? | |
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Jan 31, 2006, 10:47 PM
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#4
| | | Senior Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 13,323
| Cori76:
Then you will be able to write off the loss against other income. | |
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Feb 5, 2006, 09:47 AM
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#6
| | New Member
Join Date: Jan 2006
Posts: 4
| How do I find out exactly what the price of the stock was on that day or six months after? | |
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Feb 5, 2006, 02:28 PM
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#7
| | Ultra Member
Join Date: Nov 2005 Location: Canada
Posts: 3,669
| Quote: |
Originally Posted by Cori76 How do I find out exactly what the price of the stock was on that day or six months after? | What stock is it? | |
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Feb 5, 2006, 09:39 PM
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#8
| | | Senior Tax Expert
Join Date: Feb 2005 Location: Atlanta, Georgia
Posts: 13,323
| Call any stock broker. They can tell you! | |
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Feb 8, 2006, 06:08 PM
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#9
| | New Member
Join Date: Jan 2006
Posts: 4
| They are Anheuser Busch stocks. | |
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Feb 8, 2006, 06:15 PM
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#10
| | Junior Member
Join Date: Dec 2005
Posts: 124
| Go to yahoo finance or google it (BUD).
The stock name for it is BUD.
Once you type in BUD it will give you a chart. The chart can go back as for as the stock has been trading.
What month or day would it be that you need the stock price for?
Do you know how many shares you have?
If you have 100 shares then they are at least worth $4400. If you have 1,000 shares then you have $44,000.
BUD started out the year in 05 at around $51 per share and ended the year at around $44 per share.
It has been a good performing stock. If he bought it around 1985 then the stock has appreciated around 2,000 percent with stock splits.
Sorry to hear that your father passed away. | |
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