Can someone explain capital gains more clearly? (stocks, purchase, tax)
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Say I had voting shares in a small bank who is now selling out to a larger firm and is buying back the voting shares at $4K/ share. These shares were inherited from my grandparents and I'm not exactly sure what they paid for them. Say I had 20 shares and would be selling out next month,
Do I pay capital gains on the difference between the purchase price and the selling price or do I pay capital gains on the selling price alone? My best guesstimate of the purchase price would be $100/ share way back when. And what exactly would be the percentage of tax I'd pay out?
You pay on the stepped up value, or the value the stocks appreciated after they became your property. You need to be able to prove the value at that time. That shouldn't be difficult with a stock.
If you inherited a house, it's best to have it appraised right away. If you wait ten years, it may be hard to prove the value way back when. It would be much easier with a stock.
As stated above, you are liable for taxes on the difference in value from when you inherited the stock (not the original cost) and the current sale price.
You buy gold at 500 dollars an ounce.
The government destroys the value of the dollar bailing out crooks.
Your ounce of gold is now worth 1000 devalued dollars.
The government makes you pay $140 in taxes.
You buy gold at 500 dollars an ounce.
The government destroys the value of the dollar bailing out crooks.
Your ounce of gold is now worth 1000 devalued dollars.
The government makes you pay $140 in taxes.
You buy gold at 500 dollars an ounce.
The government destroys the value of the dollar bailing out crooks.
Your ounce of gold is now worth 1000 devalued dollars.
The government makes you pay $140 in taxes.
See....its simple
That's why some physical gold sales are "off the grid" and will remain so, going increasingly underground.
Ok I get it, thanks everyone. I appreciate the help.
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and will remain so, going increasingly underground.
