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Posted by Arthur Kamlet on January 10, 2008, 2:14 pm
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>> As I noted when y'all were kind enough to help me provide some info
>> for my son, I have a question for me.
>> Many years ago when Metropolitan Life went public, those of us with
>> polices were issued stock, at no cost. Since my Dad was a Metropolitan
>> agent, I only had their insurance and wound up with nearly 200 shares
>> of stock.
>> I think the initial price was about $14.00. As I read my pub 14,
>> depending on income, my long term capital gain tax will either be 15%
>> or zero in 2008. It will be close. One factor is, again, since I did
>> not pay for the stock, is the gain the difference between $14 and
>> selling price or $0.00 and selling price? I doubt that there are fees
>> for the transaction, because all I have to do is call them and tell
>> them to sell (as I understand it).
>> And, I don't understand the possible 0% tax rate. Certainly the Feds
>> are not going to let me collect this money w/o any taxes.
First, your gain is the net sales price less the cost basis. For
demutualized stock such as yours, the cost basis is zero. So
the gain is your net sales price.
There is a lawsuit is Chicago challnging the cost bais being zero,
but unless the court rules against the IRS position and you live
in that Court's jurisdiction, assume the basis is zero.
>As the law ~currently~ stands, yes, they will.
Yes, the former 5% rate is now zero starting January 1 2008.
The 15% LT Capital Gains rate remains 15%.
>> I don't mind paying the taxes any more than anyone else, but do want
>> to ensure I pay estimated taxes this year if required.
>
>
>
>Plan to make them (if necessary) based on when you sell the stock, only then
--
ArtKamlet at a o l dot c o m Columbus OH K2PZH
--
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