question about 0% capital gains rate
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Thread created 12-19-2012 by bitt3n
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I'm confused why the cost basis would be the price of the stock when I inherited it. Presumably, since the prior owner of the stock did not sell the stock, he did not pay any capital gains tax on it....
question about 0% capital gains rate
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Thread created 12-19-2012 by bitt3n
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6 Replies
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http://www.costbasis.com/stocks/iinheritedit.html
question about 0% capital gains rate
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Thread created 12-19-2012 by bitt3n
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6 Replies
1,020 Views
That is correct, but your cost basis is the price of the stock when it was inherited to you, and you have to have held the stock for over 1 year.
If you have no other income, you sell enough...
question about 0% capital gains rate
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Thread created 12-19-2012 by bitt3n
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6 Replies
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I recently inherited some stock, and I have a tax question. In order to take advantage of the 0% rate on long-term capital gains up to $35,350, I assume all I need worry about is selling enough stock...
question about 0% capital gains rate
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Thread created 12-19-2012 by bitt3n
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6 Replies
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Inherited stock automatically qualifies for long term capital gain treatment, so you don't have to worry about holding it for a year. Stock inherited in most years (except certain situations in...
question about 0% capital gains rate
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Thread created 12-19-2012 by bitt3n
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The answer to your last question: No. You pay tax based on any gains since inheriting the stock. It doesn't matter how much it gained in value relative to the original purchase price.
Your...
question about 0% capital gains rate
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Thread created 12-19-2012 by bitt3n
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6 Replies
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the new cost basis is the market value as of when it was transferred to you, so if you sell it ASAP you stand the best chance of paying $0 in taxes.
