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Lev, Tax Advisor
Category: Tax
Satisfied Customers: 29799
Experience:  Taxes, Immigration, Labor Relations
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Client works outside US and will continue to do so - presently

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Client works outside US and will continue to do so - presently a Florida resident. Contemplating selling stocks held over a year for a gain of about $500,000.

Estimated effective tax rate for this sale (including new transaction tax) will be? And computes to how much total tax on this sale?

2013 and 2014 tax return on everything else will be similar to 2012 which was:
$238,000 Wages
$ 23,000 Dividends
$ 8,000 Capital gains
$( 95,000) Foreign income exclusion
$174,000 AGI (single,1)

Lev :

Hi and welcome to our site!
I assume that is a long term gain - because stocks held over a year.
If so - it will be taxed at 20% tax rate based on AGI and plus additional 3.8% unearned income Medicare contribution tax - so the gain would be subject of 23.8%
As a raw estimate $500k*23.8 = $119k in regular federal income tax liability.
There might be additional AMT taxes which are hard to estimate. Assuming the maximum 28% AMT rate - that will be additional 4.2% - so the maximum AMT on that income could be up to $21k.

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