Sale of Stock

[cmansenior]

What is the name of your state?Arizona.

My Daughter wants to sell some company stock (110 shares) purchased at $20 per share, now valued at $60 per share. Only about 10 shares are over a year old. What will her Tax Liability be if she sells these shares?

Thanks
Chuck

 

[Snipes5]

How old is she? Does she have other income? If so, how much?

We can't tell you what her liability will be, it depends on what the rest of the return says, her filing status, how many exemptions she has, and other credits.

Her gain per share will be $40, so her total gain will be $4400. That will be added to her other income. The portion that is over a year old will be taxed at a more favorable rate.

Snipes

 

[abezon]

Other questions: did she buy the stock using options? An employee stock purchase plan? An employee stock option plan? If so, what were her grant dates & exercise dates?

In other words, consult a tax pro in person!