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Richard, Attorney
Category: Legal
Satisfied Customers: 55595
Experience:  Attorney with 29 years of experience.
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I am a 74 y.o who cashed in her $6000.00 account with H.D.

Resolved Question:

I am a 74 y.o who cashed in her $6000.00 account with H.D. Investments Services as I could no longer add to this account. They were going to start charging me $60.00 a year for this. Now, I am wondering what I can do to keep from paying taxes on this. Can I put it in and account marked "burial"? Any suggestions?

Submitted: 5 years ago.
Category: Legal
Expert:  Richard replied 5 years ago.
Good morning. When you say you cashed it in....what was it invested in?
Customer: replied 5 years ago.
Mutual Funds
Expert:  Richard replied 5 years ago.

Unfortunately, you will be taxed on any gain, but only on the $6,000 less your basis and since you usually pay tax on the internal gains within mutual funds on an annual basis which increases your basis, you are not likely to have a large gain. And, presuming you have held these for at least 12 months...if you are in the 0% to 15% marginal income tax bracket, you would have no tax; otherwise your tax rate would be 15%. It doesn't make any difference what you do with the money after you have sold it...that won't eliminate your gain. I'm sorry!



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