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Lev
Lev, Tax Advisor
Category: Tax
Satisfied Customers: 28084
Experience:  Taxes, Immigration, Labor Relations
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GA-Sha I am working on a plan to sell some stock so that I can invest

Customer Question

I am working on a plan to sell some stock so that I can invest that stock sale money into real estate. I am concerned that my taxable income will go up to high moving me into a higher tax bracket and possibly affecting my health care costs. Can anyone provide some advice so that I can avoid a higher tax bracket and keep my health care costs the same? Thanks!
Submitted: 7 months ago.
Category: Tax
Expert:  Lev replied 7 months ago.
Let first estimate your expected tax liability - so we will know what to expect.Your taxable gain is calculated as (selling price) MINUS (adjusted basis)The adjusted basis is your original purchase cost (assuming shares were purchased) adjusted by reinvested dividends,Let me know these estimated amounts and your other taxable income - so we may start planning form here...
Customer: replied 7 months ago.
Morning Lev:
Here is what I came up with to answer your questions. I have stocks (not yet listed below) which I have owned for about 8 years which have had the dividends reinvested the entire 8 years. Do we need to just account for the dividends re-invested this year, or all 8 years? Let me know what info I need to send you for these stocks or anything else. I have listed the other stocks I want to sell below. Thanks for your help, ChrisOther taxable income:Rental Income $6500 for the year
Other Business Income:$8000Stock info
Apple:Current Market Value as of this message:$106.91
28 shares bought at $84.91
12 Shares bought at $93.27THRM Gentherm: Current Market Value as of this message: $43.19
50 shares bought at $37.40TM Toyota Motor Corp: Current Market Value as of this message :$104.70
10 shares bought at $77.77
15 shares bought at $83.55
Expert:  Lev replied 7 months ago.
Do we need to just account for the dividends re-invested this year, or all 8 years?You need to account ALL reinvested dividends - and add that amount to your basis..Apple28 shares bought at $84.91 = 2377.4812 Shares bought at $93.27 = 1119.24Total basis 3496.72Expected sale price 40 shares at $106.91 = 4276.4Expected capital gain gain = 4276.4(selling price) MINUS 3496.72(adjusted basis) = 779.68
Expert:  Lev replied 7 months ago.
HRM Gentherm: Current Market Value as of this message: $43.1950 shares bought at $37.40 = 1870 - that is your basisExpected sale price 40 shares at $43.19 = 2159.5Expected capital gain gain = 2159.5(selling price) MINUS 1870(adjusted basis) = 289.5.TM Toyota Motor Corp: Current Market Value as of this message :$104.7010 shares bought at $77.77 =(###) ###-####shares bought at $83.55 = 1253.25Total basis 2030.95Expected sale price 25 shares at $104.70 = 42617.5Expected capital gain gain = 2617.5(selling price) MINUS 2030.95(adjusted basis) =586.55 Let me know if that helps.
Customer: replied 7 months ago.
Thanks for the help Lev. Is the attached document helpful to you in figuring out the re-invested dividends since I started investing?
Expert:  Lev replied 7 months ago.
Yes - I see that 50.47 of dividends were used to purchase additional shares in 2016- so that mount is added to the basis.You might need similar statements for all prior years.
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