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bkb1956
bkb1956, Enrolled Agent/Real Estate & Corporate Paralegal
Category: Capital Gains and Losses
Satisfied Customers: 2822
Experience:  18+ years of experience as a tax preparer; 25+ years of experience as a real estate and corporate paralegal
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My mother in law has stock in a company that went public in

Customer Question

my mother in law has stock in a company that went public in 2013 she has been retired and other than va income and ss income in 2015 ( less than 35000 has not filed tax returns in years. this stock is now worth 500,000 or more if she sells some share what would her tax liability be,
Submitted: 3 months ago.
Category: Capital Gains and Losses
Expert:  bkb1956 replied 3 months ago.

Welcome to Just Answer. My name is ***** ***** I will be happy to assist you.

Your mother-in-law will pay any capital gains tax due on the difference between her basis (what she paid for the stock) and the sales price. For example, if she paid $200,000 for the stock and it sells for $500,000, she will pay capital gains tax on $300,000. Capital gains are taxed at a lower rate than regular income. The capital gains tax rates range from 0% to 20% vs. the ordinary income tax rate 10% to 39.60%.

The 2016 capital gains tax rates can be found at the following link:

http://www.schwab.com/public/schwab/nn/articles/Taxes-Whats-New

Please let me know if I can assist you further.

Thank you and best regards,

Barb

Expert:  bkb1956 replied 3 months ago.

Just following up with you to see if you have any other questions or concerns. If so, please let me know, and I will be happy to assist you further.

Best regards,

Barb

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