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Posted by Marion1E on October 30, 2007, 11:47 pm
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I was forced to sell my shares in a company this year
because it became private. I do have a gain and I wonder if
I have to report the entire gain this year or if there is
anything in the tax law that I could spread this gain over
more than one year since I wouldn't have sold the company
otherwise?
Any help is appreciated
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Posted by Herb Smith on November 1, 2007, 12:30 am
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Mario...@comcast.net wrote:
> I was forced to sell my shares in a company this year
> because it became private. I do have a gain and I wonder if
> I have to report the entire gain this year or if there is
> anything in the tax law that I could spread this gain over
> more than one year since I wouldn't have sold the company
> otherwise?
Tax on the gain is due for the year of sale, unless you are
getting it as installment payments. Maximum tax rate (LTCG)
is 15%, regardless of claiming it this year or next year.
Your intent (to sell or not sell) is irrelevant.
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Bill on November 1, 2007, 12:30 am
Please log in for more thread options Marion1E@comcast.net posted:
> I was forced to sell my shares in a company
> this year because it became private. I do have
> a gain and I wonder if I have to report the
> entire gain this year or if there is anything in
> the tax law that I could spread this gain over
> more than one year since I wouldn't have sold
> the company otherwise?
There is no provision I've heard about, which would permit
you to spread the gain. Since you received payment during
this year, you must declare the income on Schedule D, show
your cost basis and the original date of purchase, and
calculations will result in a maximum of 15% LT capital
gains tax (starting at 5%, if you're in a low bracket).
Bill
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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Posted by Ernie Klein on November 1, 2007, 12:30 am
Please log in for more thread options Marion1E@comcast.net wrote:
> I was forced to sell my shares in a company this year
> because it became private. I do have a gain and I wonder if
> I have to report the entire gain this year or if there is
> anything in the tax law that I could spread this gain over
> more than one year since I wouldn't have sold the company
> otherwise?
So do I.
Avaya perhaps?
That company was a spinoff of a spinoff from the AT&T
breakup. I purchased the underlying AT&T stock in the '60s.
My basis in Avaya was next to zero and darned near
impossible to calculate. I had no intention of ever selling
so that my decedents could take advantage of the step up and
I wouldn't have to pay a huge capital gain.
When Avaya was purchased (buy out) by a private entity it
became a forced sale for me. The capital gains has to be
taken this year. Now through no action of my own, the
government will get a large part of the profit. I don't
like it, but that is how it works. I am sure it is the same
for you.
--
-Ernie-
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
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Posted by Benjamin Yazersky CPA on November 1, 2007, 10:10 pm
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> I was forced to sell my shares in a company this year
> because it became private. I do have a gain and I wonder if
> I have to report the entire gain this year or if there is
> anything in the tax law that I could spread this gain over
> more than one year since I wouldn't have sold the company
> otherwise?
>
> Any help is appreciated
You have a gain or loss upon the disposition of your shares
of stock. The basis and holding period of the shares will
determine this.
If you have an installment sale, the gain may be taxed in
different years.
I know nothing of intent in this regard. If you have any
referneces to cite regarding intent to sell shares of stock
or not, I would appreciate knowing about it.
___________________________________
<<< Benjamin Yazersky, CPA [NJ & NY] >>>
-----> real address on hobokeni or hobokenx <-----
<< ------------------------------------------------------- >>
<< The foregoing was not intended or written to be used, >>
<< nor can it used, for the purpose of avoiding penalties >>
<< that may be imposed upon the taxpayer. >>
<< >>
<< The Charter and the Guidelines for submitting posts >>
<< to this newsgroup as well as our anti-spamming policy >>
<< are at www.asktax.org. >>
<< Copyright (2007) - All rights reserved. >>
<< ------------------------------------------------------- >>
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