Liquidating inherited stocks dating success tips projectmyskills

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The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.

For example, if your dad bought 100 shares of Get Rich Quick in 1951 for each, his tax basis was

The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.For example, if your dad bought 100 shares of Get Rich Quick in 1951 for $10 each, his tax basis was $1,000.

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The basis in the shares is considered to have "stepped up" or "stepped down" to the date-of-death value.

For example, if your dad bought 100 shares of Get Rich Quick in 1951 for $10 each, his tax basis was $1,000.

But if the stock were valued at $105 a share, the estate must pay tax on $250,000 -- a total of $87,500 -- before the shares can be distributed to the beneficiaries.

It's impossible to guess what tax rate might be imposed on estates after 2012.

If you decide to sell the inherited stock immediately, you may be able to avoid paying any taxes on the sale.

If you sell the stock immediately after you inherit it, it may be close to the same price that it was when the owner of the stock died.

However, the alternative valuation date must be used by the entire estate.

The executor can't use the primary valuation date for some assets and the alternative date for others.

,000.

But if the stock were valued at 5 a share, the estate must pay tax on 0,000 -- a total of ,500 -- before the shares can be distributed to the beneficiaries.

It's impossible to guess what tax rate might be imposed on estates after 2012.

If you decide to sell the inherited stock immediately, you may be able to avoid paying any taxes on the sale.

If you sell the stock immediately after you inherit it, it may be close to the same price that it was when the owner of the stock died.

However, the alternative valuation date must be used by the entire estate.

The executor can't use the primary valuation date for some assets and the alternative date for others.

In many cases, when individuals with larger estates die, they may have some type of stock to pass on to a beneficiary.

If there is no gain from that price, you will not have any capital gains taxes to worry about.

The other option that you have is to keep the stock and sell it later.

If you like the long-term prospects of the stock, you might want to continue to let it grow in value.

When you finally decide to sell the stock, you will only pay capital gains taxes on the difference between the stepped up basis and the sales price.

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