Capital Gains and Losses

Capital Gains Tax Questions? Ask a Tax Advisor for Answers ASAP

Ask an Expert,
Get an Answer ASAP!

In 1998 on bought a business in a stock sale for

Customer Question
In 1998 on bought...

In 1998 on bought a business in a stock sale for $640,000.00. In 2013 I sold the business for $1,250,000.00 in a stock sale. The new owner made monthly payments until January of 2018 in which they paid me off in a lump sum of $965,000.00. Can I substract the difference of what I paid against $965,000.00 and pay the difference of 325,000.00 in capital gains?

Accountant's Assistant: I love the idea of making big money with investments, but there are so many things that could go wrong. The Accountant will be able to help you. Is there anything else the Accountant should be aware of?

I bought a business in 1998 in stock purchase for $640,000.00. I sold the business in 2013 in a stock sale for $1,250,000.00 in which the new owner made monthly payments until January of 2018 in which they paid the lump sum of $965,000.00 . Can I only pay capital gains on the difference of the $640,000.00 against the $965,000.00 ?

Submitted: 3 months ago.Category: Capital Gains and Losses
Show More
Show Less
Ask Your Own Capital Gains and Losses Question
Answered in 21 minutes by:
3/31/2018
Tax Expert: levr, Tax Advisor replied 3 months ago
levr
levr, Tax Advisor
Category: Capital Gains and Losses
Satisfied Customers: 33,125
Experience: Working for a large tax preparation service
Verified

I assuming that the "stock sale" - means - you sold shares in your corporation.

Then - you should report that sale on your tax return for the year of sale - 2013.

Your total gain on an installment sale is generally the amount by which the selling price of the property you sold exceeds your adjusted basis in that property.

As that was your installment sale agreement...

Under the installment method, you include in income each year only part of the gain you receive, or are considered to have received. You don't include in income the part of the payment that's a return of your basis in the property. Use Form 6252.pdf, Installment Sale Income, to report an installment sale in the year the sale occurs and for each year you receive an installment payment.

So - every year you received payments - a part of the gain will be recognized and reported on form 6252 - and only that pat will be included into that year taxable income.

Ask Your Own Capital Gains and Losses Question
Tax Expert: levr, Tax Advisor replied 3 months ago

I appreciate if you take a moment to rate the answer.

Experts are ONLY credited when answers are rated positively.If you still have any doubts, need clarification - please be sure to ask.I am here to help you with all Social Security / Tax related issues
Ask Your Own Capital Gains and Losses Question
Was this answer helpful?

How JustAnswer works

step-image
Describe your issueThe assistant will guide you
step-image
Chat 1:1 with a tax expertLicensed Experts are available 24/7
step-image
100% satisfaction guaranteeGet all the answers you need
Ask levr Your Own Question
levr
levr
levr, Tax Advisor
Category: Capital Gains and Losses
Satisfied Customers: 33,125
33,125 Satisfied Customers
Experience: Working for a large tax preparation service

levr is online now

A new question is answered every 9 seconds

How JustAnswer works:

  • Ask an ExpertExperts are full of valuable knowledge and are ready to help with any question. Credentials confirmed by a Fortune 500 verification firm.
  • Get a Professional AnswerVia email, text message, or notification as you wait on our site. Ask follow up questions if you need to.
  • 100% Satisfaction GuaranteeRate the answer you receive.

JustAnswer in the News:

Ask-a-doc Web sites: If you've got a quick question, you can try to get an answer from sites that say they have various specialists on hand to give quick answers... Justanswer.com.
JustAnswer.com...has seen a spike since October in legal questions from readers about layoffs, unemployment and severance.
Web sites like justanswer.com/legal
...leave nothing to chance.
Traffic on JustAnswer rose 14 percent...and had nearly 400,000 page views in 30 days...inquiries related to stress, high blood pressure, drinking and heart pain jumped 33 percent.
Tory Johnson, GMA Workplace Contributor, discusses work-from-home jobs, such as JustAnswer in which verified Experts answer people’s questions.
I will tell you that...the things you have to go through to be an Expert are quite rigorous.

What Customers are Saying:

I really was impressed with the prompt response. Your expert was not only a tax expert, but a people expert!!! Her genuine and caring attitude came across in her response...

T.G.WMatteson, IL

I WON!!! I just wanted you to know that your original answer gave me the courage and confidence to go into yesterday's audit ready to fight.

BonnieChesnee, SC

Great service. Answered my complex tax question in detail and provided a lot of additional useful information for my specific situation.

JohnMinneapolis, MN

Excellent information, very quick reply. The experts really take the time to address your questions, it is well worth the fee, for the peace of mind they can provide you with.

OrvilleHesperia, California

Wonderful service, prompt, efficient, and accurate. Couldn't have asked for more. I cannot thank you enough for your help.

Mary C.Freshfield, Liverpool, UK

This expert is wonderful. They truly know what they are talking about, and they actually care about you. They really helped put my nerves at ease. Thank you so much!!!!

AlexLos Angeles, CA

Thank you for all your help. It is nice to know that this service is here for people like myself, who need answers fast and are not sure who to consult.

GPHesperia, CA

< Previous | Next >

Meet the Experts:

R. Klein, EA

R. Klein, EA

Enrolled Agent

263 satisfied customers

Over 20 Years experience in resolving tough tax cases

jgordosea

jgordosea

Enrolled Agent

173 satisfied customers

As an Enrolled Agent you can be ensured of my competence in income tax matters.

PhillipB EA

PhillipB EA

Accountant

130 satisfied customers

Enrolled Agent with 8 years experience in tax return preparation, representation, and taxpayer consultation

Arthur Rubin

Arthur Rubin

Tax Preparer

77 satisfied customers

Over 22 years of tax preparation experience.

Bill-the-CPA

Bill-the-CPA

Certified Public Accountant (CPA)

55 satisfied customers

Seasoned professional with over 15 years in public accounting. Income, sales and property tax. Also accounting/tax software.

FredStevens

FredStevens

Accountant

37 satisfied customers

Experienced in business, accounting and tax planning for individuals, small/medium sized businesses and non-profit organizations

Shane-CPA

Shane-CPA

CPA, PFS, CGMA

11 satisfied customers

Shane Northrop is a Certified Public Accountant, Personal Financial Specialist and a Chartered Global Management Accountant

< Previous | Next >

Related Capital Gains and Losses Questions
Plan to sell a considerable amount of stock and looking to
hello....plan to sell a considerable amount of stock and looking to see what i might expect my tax capital gain taxes will be in 2018. … read more
Chad EA, CDFA®, CFP®
Chad EA, CDFA®, CFP®
IRS Enrolled Agent, CFP(R),
Master\u0027s Degree
2,467 satisfied customers
My husband and I bought a primary residence house in Sept.
My husband and I bought a primary residence house in Sept. 2016 and sold our previous primary residence house in Jan. 2017. We took the Capital Gains tax exemption on the house we sold. We are in the … read more
Barbara
Barbara
Enrolled Agent, Paralegal
5,433 satisfied customers
My effective tax rate in 1017 was 6.18 %. In 2018 I will be
My effective tax rate in 1017 was 6.18 %. In 2018 I will be selling several warehouses with my share being 1/3 of gross amount. Totally depreciated. We paid off remaining mortgage prior to distributio… read more
emc011075
emc011075
Senior Tax Specialist
Bachelor's Degree
16 satisfied customers
Sold our business property in April of 2014. We held
Sold our business property in April of 2014. We held personally held the mortgage contract. Current principle balance was $494,000. We have been paying small capital gain amounts on our personal incom… read more
Dr. Fiona Chen
Dr. Fiona Chen
President
Ph.D.
1,155 satisfied customers
Last year we sold my mothers house after she went into the
last year we sold my mothers house after she went into the nursing home. the house was quit claim deeded to me and my brother in 1998 with a life estate. my parents bought the house in 1991. my father… read more
levr
levr
Tax Advisor
33,125 satisfied customers
Does capital gains tax has to be paid if you are the owner
Does capital gains tax has to be paid if you are the owner of a rental property and you move in yourself after 30 years. We paid $105,000 and it is assessed at $1,320,000.00. We have 3 houses includin… read more
Mark Anderson
Mark Anderson
Attorney
Doctoral Degree
10 satisfied customers
I have a loan in place for my business. Sold it in 2011 and
I have a loan in place for my business. Sold it in 2011 and buyer has 5 year note at 4.5%. There is about 2 1/2 yrs left on note. Seems like they are having a cash flow problem and have approached me … read more
keeperumiami
keeperumiami
Sr Financial & Tax Consultant
Bachelor\u0027s Degree
1 satisfied customers
At the start of 2013 I was under contract as an agent with
At the start of 2013 I was under contract as an agent with an insurance agency. The contract specified that I could leave the agency and the agancy could not copete with my clients (reverse non compet… read more
levr
levr
Tax Advisor
33,125 satisfied customers
I have questions regarding a pending sale of property--its
I have questions regarding a pending sale of property--it's a commercial property in California held by my mother's trust. Escrow is scheduled to close on about 12/2/13, with a purchase price of $525,… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
173 satisfied customers
I just started buying property tax deeds from the parish I
I just started buying property tax deeds from the parish I live in? How to report it in my income tax return for 2013? Ex: I bought property tax sale for $5000 this past January 2013 and I just got fr… read more
jgordosea
jgordosea
Enrolled Agent
Bachelor's Degree
173 satisfied customers
4 equal partners bought a piece of land in texas.One of the
4 equal partners bought a piece of land in texas.One of the partner has a LLC company financed it with the understanding that it owns only 25 % equaty.75% paid by the other partners in the form of equ… read more
levr
levr
Tax Advisor
33,125 satisfied customers
in 2011 2012 tax year i sold house 111 k but bought 162 loose
in 2011 2012 tax year i sold house 111 k but bought 162 loose 51 k i had 2 houses rented this out for income. this tax year 2012 2013 i have sold buisness gained 57 k would i get relief from this gain… read more
TonyTax
TonyTax
Tax Consultant
High School or GED
8,914 satisfied customers
IRA distribution: I must take RMD in 2013. Your opinion of
IRA distribution: I must take RMD in 2013. Your opinion of financial value of waiting until Dec of each year to withdraw 100k vs monthly withdraws? Monthly would be more convenient but at what cost. A… read more
R. Klein, EA
R. Klein, EA
Enrolled Agent
Master's Degree
263 satisfied customers
We will be selling a great deal of stock in 2012. Knowing
We will be selling a great deal of stock in 2012. Knowing that the capital gains tax rate is possibly increasing from 15% to 23% for us come January 1, we would like to know what we need to do to pay … read more
PhillipB EA
PhillipB EA
Accountant
Bachelor's Degree
130 satisfied customers
I have made a substantial overall profit this year on buying
I have made a substantial overall profit this year on buying and selling publicly traded apple stock options. I am now planning to sell 10 contracts ( worth $100,000 in total) of july expiration stock… read more
USTaxAdvising
USTaxAdvising
Partner
Bachelor's Degree
609 satisfied customers
I sold 100 shares of stock which was $7,125. I bought 2 different
I sold 100 shares of stock which was $7,125. I bought 2 different stocks at the same time totaling $6,900. I recieved a statement saying my capitol gains are $3,815. how much do I have to claim on my … read more
gregmey
gregmey
Financial Planning Associate
Bachelor's Degree
20 satisfied customers
I had a rental house in Arizona. I live in Washington. I sold
I had a rental house in Arizona. I live in Washington. I sold it as a Short Sale in July 2011 for 66,000.00 the mortgage was for 168,000.00. Will I be taxed as a capital gain? if so for how much? Can … read more
FredStevens
FredStevens
Accountant
Bachelor's Degree
37 satisfied customers
When do I pay capital gains tax? Im considering when to sell
When do I pay capital gains tax? I'm considering when to sell some stock, and want to defer as long as possible the tax payment. So, should I sell the stock on Jan 1 2012, so I can wait until tax day … read more
FredStevens
FredStevens
Accountant
Bachelor's Degree
37 satisfied customers
Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Disclaimer: Information in questions, answers, and other posts on this site ("Posts") comes from individual users, not JustAnswer; JustAnswer is not responsible for Posts. Posts are for general information, are not intended to substitute for informed professional advice (medical, legal, veterinary, financial, etc.), or to establish a professional-client relationship. The site and services are provided "as is" with no warranty or representations by JustAnswer regarding the qualifications of Experts. To see what credentials have been verified by a third-party service, please click on the "Verified" symbol in some Experts' profiles. JustAnswer is not intended or designed for EMERGENCY questions which should be directed immediately by telephone or in-person to qualified professionals.

Show MoreShow Less

Ask Your Question

x