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Tax.appeal.168
Tax.appeal.168, Tax Accountant
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My company has offered an option buy-back for a portion of

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My company has offered an option buy-back for a portion of my vested shares. I understand that the transaction will be subject to short term capital gains taxes as I will only temporarily hold the certificate while the transaction is done but I'd like to have some idea of the total tax liability I'd incur should I opt in. My only source of income is my salary at just over $73k annaully and the gross profit from the sale of the stock would be just under $10k.
Hello, THANK YOU for choosing Just Answer. My goal is to help make your life...a little...LESS taxing.

Capital gain income from assets held one year or less is taxed at the ordinary income tax rates in effect for the year. Please remember that there will be capital gains on the federal, as well as the state side. Based on your salary and the stock sale, if your filing status is single and your income will not exceed $83,600, for federal you will fall under the 25% tax bracket. For the state of California, your salary and the stock sale places you in the 10% tax bracket. Please note for federal, if your filing status is single and your income will be over $83,600, you will be in the 28% tax bracket.

BREAKDOWN:

I know that you wrote under $10,000 but for math calculations, I will use $10,000....

Federal: $2,500 ($10,000 x 25%)
State: $1,000 ($10,000 x 10%)



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