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Wallstreet Esq.
Wallstreet Esq., Tax Attorney
Category: Tax
Satisfied Customers: 585
Experience:  10 years experience
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I have not filed a tax return in 10 years I've had no

Customer Question

Hello, I have not filed a tax return in 10 years I've had no reportable income for that time. I recently inherited some stocks which I sold to pay off some debt. In the amount of $260,000.
Am I liable for the capital gains tax and can I divert it for another year. Thank you.
Submitted: 1 year ago.
Category: Tax
Expert:  Lev replied 1 year ago.

Because of so large income - you would be required to file.

Whether you will have any tax liability depends on your basis.

The basis for inherited assets is so called stepped basis equals to the fair market value of stocks when the decedent passed away.

So your taxable gain is (selling price) MINUS (basis)

Thus if shares are sold shortly after they were inherited - most likely - there would not be any gain.

But filing and reporting is required.