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Ask Lane Your Own Question
Category: Tax
Satisfied Customers: 11371
Experience:  Law Degree, specialization in Tax Law and Corporate Law, CFP and MBA, Providing Financial & Tax advice since 1986
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I just bought a coop apartment in Staten Island, NY (all cash,

Customer Question

I just bought a coop apartment in Staten Island, NY (all cash, no mortgage). I had to cash in an amount of stock for the purchase price. What is my tax liability and deductions?
Submitted: 1 year ago.
Category: Tax
Expert:  Lane replied 1 year ago.
Hi,.The taxable event here is the capital gain (or loss) on your stock sale..If you held the stock for more than a year, and you sold for more than your basis (purchase price) then you'll have a long term capital gain:.Long-term gains and qualified dividends are taxed at0% if taxable income falls in the 10% or 15% marginal tax brackets15% if taxable income falls in the 25%, 28%, 33%, or 35% marginal tax brackets20% if taxable income falls in the 39.6% marginal tax bracket.So as you can see the widest bracket for long terms capital gains is 15% (those in the 25,28,33,AND 35% ORDINARY income brackets) ... and again the gains is sales price MINUS basis ... so lets say you sold the stock for 100000 and bought for 50,000, your gain would be 50,000 and at 15% the capital gains tax would be (50,000 x 15%) = 7500.LIKE the investment in the stock when you first bought it ... your investment IN the co-op is not a taxable event ... but WILL lower your gain (purchase price being par of basis) upon it's eventual sale..In terms of deductions, property taxes, (given that you don't have a mortgage to allow for the write-offs for points, mortgage insurance, or mortgage interest) is the only deduction that might be associated with the Buy itself..Of course, the normal tax incentives for things like energy credits for energy efficient renovations, could apply..If you'd like to give me a feel for your household income for the year of purchase (year you sold the stock(s)) and your basis (investment IN the stock(s)), I can give you a more specific answer regarding the actual tax cost of the capital gain on sale of the stock..Let me know if you have questions ...,Lane