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Lane
Lane, JD, CFP, MBA, CRPS
Category: Capital Gains and Losses
Satisfied Customers: 11554
Experience:  Have been providing Financial and Tax advice for 30 years.Concentration in Corporations, Estate, Income Tax and Business Planning
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If you sell stocks purpose of investing in gold and silver

Customer Question

if you sell stocks for the purpose of investing in gold and silver do you have to pay capital gains tax when these stocks are from a Trust?
Submitted: 11 months ago.
Category: Capital Gains and Losses
Expert:  Lane replied 11 months ago.

Yes, either the trust (if this is an irrevocable trust that pays it's own taxes of form 1041) pays the capital gains ... OR, of the trust is revocable, then the taxation flows through to the grantor of the trust.

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But either way, when the stocks are sold there will be a gain (IF the stocks are sold FOR a gain) to whomever the owned the stocks at the time of the sale.

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Capital gains is (Sales price - basis).

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And the basis is usually purchase price, UNLESS the stocks were gifted to you or left as an inheritance

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If the stocks were gifted to you, then the basis is the basis of the person or entity that gave them to you.

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If the stocks were left to you at death, then the basis is the fair market value of the stocks on the date of death.

Expert:  Lane replied 11 months ago.

If you can let me knwo more about what you mean when you say "stocks are from a trust," I can give you a much more specific answer

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Are you the GRANTOR of the trust, are you the benefiary?

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Let me know and we can go from there

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lane

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I have a law degree, (Juris Doctorate), with concentration in Tax Law, Estate law & Corporate law, an MBA, with specialization in financial accounting & tax, a BBA, and CFP & CRPS designations, as well - I’ve been providing financial, Social Security/Medicare, estate, corporate, non-profit, and tax advice, since 1986.

Expert:  Lane replied 10 months ago.

You're very welcome ... Your positive rating … (by using those the stars or faces on your screen, and then clicking “submit”) …is thanks enough!

That's the only way I'll be credited for the work here

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But again, if you would provide more detail about how the trust conveyed the asset to you AND how the asset was put in trust, I can give you a much more specific answer

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Thank you,

Lane

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