i sold pepsi stock this year, which i aquired by owning quaker oats. what is my tax liability?
105486
If all your quaker oaks stocks converted 100% to pepsi stock, and you sold all those pepsi stocks, then your tax liability would be simple.\n\nYou take what you got in your recent sale of pepsi stocks.\nThen you subtract what you paid to get the quaker oaks stocks.  If you inherited them, it would be what whoever paid for them.  If you got pepsi stock for "free", then you paid "0".  \n\nThe difference is your capital gain (or loss).  If you owned for more than one year, your capital tax rate is 15%.  If less than one year, it's whatever your marginal income tax rate is.
165093
Contact the finance department of the business you worked for. They should have issued one to you and one to the IRS by the end of last month.
47310
You're correct.  Presumably you received a 1099-DIV with $8000 (or whatever) in the cap gains distribution.  You would need to include that amount in your return.  When you sell the shares, that amount will be included in your basis so your eventual gain will be total sales price-$108,000.
1021392
If it is a US company, it is before tax.  If it is a company in some other countries it is partially or fully after tax.  The UK takes a percentage of their dividends off the top as tax.  If you are a US taxpayer then you will have paid the UK tax indirectly through the UK process and then be able to use it as a credit against your US taxes.  \n\nSo if you are American, it depends upon the country of domicile of the company.  If you are not American it may or may not be after tax.
714168
There is no “regular” tax implication when exercising stock options.  The regular tax kicks in when you sell the stock.\n\nIf the stock is sold more than 1 year after it was exercised AND more than 2 years after it was granted, then the gain from the grant date to the sell date is all capital gains.\n\nIf the stock is sold 1 year or less after it was exercised OR 2 years or less after it was granted, then the gain from the grant price to the Fair Market Value (FMV) when it was exercised is considered ordinary income not subject to FICA.  The remaining gain/loss is capital gain.  It is long term if the stock was held more than one year after it was exercised.\n\nAMT:\n\nAlternative Minimum Tax is different in that the exercise event DOES trigger tax.  The built-in gain from the grant date to the FMV at the exercise date is added to your AMT income.  When the stock is eventually sold, you will do two Schedule Ds...one for Regular Tax with the basis equal to the grant date price, and one for AMT with the basis equal to the FMV price.  Your regular gain will be larger than your AMT gain because your AMT basis will be larger.....you've already paid tax on some of your AMT gain whereas you didn't pay any regular tax on this gain.  Confusing, isn't it.\n\nWill you definitely have AMT when you exercise ISO stock?  Not necessarily.  Your AMT will be affected, but will it grow to the point where it will be higher than your regular tax?  It depends on other items on your return.  To get an idea of how much you can absorb, go back to your 2005 tax return and figure out your AMT and see how far it was below your regular tax.  This is an estimate of 2006, not a guarantee.\n\nIf ISO exercise does cause your AMT to be larger than your regular tax, of course, you will have to add the difference to your regular tax as you expect.  However, unlike other things that trigger AMT, ISO exercising is refundable.  What?  You get a credit for whatever additional tax you have to pay due to ISO exercising.  This credit carries forward to next year and, if not used up, carries forward to the next year.  It keeps doing this until it is used up.  This credit goes against regular tax until it drops to your AMT tax.\n\nComprehensive example:\n\n2006: Your normal regular tax is $20,000.  Your AMT is $16,000.  You exercise 10,000 shares with a FMV of $10/share with a grant price of $4/share.  You have to add 10,000 x (10 - 4) = 60,000 to your AMT income causing, let's say, $15,600 of additional AMT tax.  AMT is now $31,600 which is $11,600 more than your regular tax.  So, for 2006, your tax liability is $31,600, however, you get a credit of $11,600.\n\nIf in 2007, your regular tax is still $20,000 and your AMT is still $16,000, your tax is $16,000.  $4,000 of credit was used to lower your regular tax down to your AMT.  Your credit now drops to $7,600.\n\nIf in 2008 you sell the stock for $20, your regular gain is 10,000 x ($20 - $4) = $160,000.  Your AMT is 10,000 x ($20 - $10) = $100,000.  Again, you figure out your regular tax and AMT and if the AMT is lower than your regular tax, you get to use the carry-over credit until it is used up.\n\nOf course, part of your basis is your brokerage fees, but to keep things simple, I ignored these.  If you sell at a regular loss or even at an AMT loss, the rules still apply, but you can only get $3,000 per year of loss to use against other income.\n\nHope this helps  :)
643864
The answers that you are looking for are at this website. There is so much information about income taxes. This company helped me learn who is liable for income taxes and who is not. I learned that I had no tax liability and this company helped me take the necessary steps staying within the bounds of the law in dealing with the IRS.
426579
If the company was public and was acquired, you should own stock in the new company, depending on the offer.\n\nCheck with any trader or research the company who bought them.  If you held the shares in a brokerage account, they would have given you a statement showing how many shares you own of the new company.
339510
I have a lawyer on retainer for the law suit I will file against Absolut and Crown Royal. I have also have my doctor documenting the impacts my "social drinking' is having on my health. This way I can sue them for more drinking money. I have also invested heavy in their stock so my dividends can be used cab fare. LOL to the bank and rehab
632342
If the options are in-the-money, you should certainly exercise them.  \n\nThe options you have are either qualified or non-qualified options.  If they are nonqualified, then the fact that you are subject to the AMT doesn't matter.  You have to pay ordinary income taxes on the difference between the fair market value and the strike price.  Let's look at an example.  Suppose you can buy the stock at $10 per share and it is trading at $22 per share.  $10 is the strike price and $22 is the fair market value.  You have to pay ordinary income taxes on (22-10) = $12 per share.  $22.00 now becomes your tax basis.  Let's say you hold onto the shares for two years and sell at $40.  You have to pay long-term capital gains taxes on the gain -- and the gain is $40 minus your tax basis of $22 -- so you pay capital gains taxes on a $18 gain per share.\n\nNow let's suppose that they are qualified options (part of an employee option plan open to everyone).  If you weren'r subject to the AMT, then you have no taxable event until you sell the stock.  When you do, you are subject to capital gains tax on the difference between what you sell it at and what you bought it at.\n\nHowever, you are subject to AMT taxes.  This means that when you exercise the options, you have to pay taxes at the AMT rate on the difference between the fair market value and the strike price.  This is just like the non-qualified case -- except that you pay at the 20% AMT rate rather than the higher ordinary tax rate (which could be as high as 39.6%).  The fair market value (price at exercise) becomes your tax bases.  When you eventually sell the stock, any capital gains is taxed at the long or short term capital gains rate where the gain is the difference between the selling price and your tax basis.\n\nHolding onto the stock has risks.  It is possible for the stock to fall below the value of the owed taxes.  This happened to a lot of people during the 2001 burting of the internet bubble.
858009
You sound like you don't have any proof. Any written papers from you parents, which state each of them gave you $10,000 every year - I am sure it's a good proof. \n\nGifts you receive aren't considered income. It doesn't matter how large they are. You don't report them on your income tax return in any way.\n    There are a couple of important qualifications on this simple rule:\n\nTrue gifts. This rule applies only to true gifts. You can't avoid paying income tax by calling something a gift when it isn't. For example, a "gift" you receive in exchange for services or some other consideration isn't a gift. \nIncome after gift. If you receive a gift of property that produces income, you must report any income produced after the gift. For example, if you receive stock as a gift, you must report any dividends paid on that stock after the gift. \nYou can find more info in:\nhttp://www.fairmark.com/begin/gifts.htm
530976
There's no hard and fast rule on this. Certainly small amounts of selling your used stuff is totally fine and you won't get any income tax liability. Basically, they already taxed you for the money you used to buy it, and you won't get as much for it as you paid in the first place. However, if you sell enough stuff that it moves from hobby to business, and you sell things online in order to make a profit, particularly if you buy wholesale things and sell them, you are running a business and need to declare the profits.
289648
Your basis for any stock that you inherited is based on the closing cost of the stock on the day that it was traded to you.  For example if you received 100 XYZ stock on Feb 1st, 2004, which closed at $50 a share. Then you cost basis would be $5000.  \n\nMonteverde2\nUS Army Tax Preparer
629693
when you sell the shares- the gain will be either short term or long term depending on how long you held them--short term gains are taxed at ordinary income rates--long term rates at the new 15 % capital gains rate-- the mf co will send you a statement which may show some long term capital gains depending on their portfolio- usually the statement from the mf co will spell it all out, including dividends paid to you during the year- its all very simple-- the only thing you should check is how long you have had the shares- i believe the time period for long term gain is one year- double check that- if you are close to that but not there -consider holding the shares to get the very low 15 % long term capital gains tax rate- it is worth waiting for-- i am a retired CPA & CFP__good luck to you--by the way- you can also call the mf co for explanation and some advise free of charge !!
2610
Whether you're hit with the AMT or not, the real answer is that you should exercise the shares when you are ready to sell them, there's no other reason for you to exercise shares unless you're leaving the company.  \n\nThere are tax and AMT issues, but without understanding your full income picture there's no real way to answer that question.\n\nI know of several people that exercised stock, held it and then placed margin buys against the value of the shares, when their stock tanked the margins were called and at least one of these individuals had to sell their house to pay off the margin call.  I was in your position a few years ago, i exercised and sold immediately all shares that i exercised.  [if for no other reason to 'diversify my portfolio']
270161
First off did you pay taxes on the Dividends that you received from the Mutual Fund or did you pay taxes on both the earnings of the mutual fund and the Dividends.  \n\nIf you haven't paid taxes on the earnings every year then you have to pay taxes on the entire amount of earnings. (Your current value of the fundsdifferencee cost basis) In this case your cost basis is simply the initial investment.  \n\nIf you have paid taxes on your earnings.  Then the cost basis is the amount your reported last year.  For example if you reported that the value of your fund went up from $100 to $150 in 2004 and you paid the taxes on that $50 earning.  Then for 2005 your cost basis will be $150 and you would pay the taxes on the diffrence of that $150 and your current value.\n\nWithout knowing any more specific information about your situation I don't believe I can give better advice then that.\n\nBelow are some websites from the IRS on accounting methods and selling of stocks/mutual funds.\n\nMonteverde2\nUS Army Tax Preparer
19101
if you buy there is nothing to do. If you sell there are tax considerations.  Short term capital gains require that you pay more.  Long term capital gains means you pay less. Hold onto the stocks... Bill Gates will surely pull a rabbit out of his hat for long term profits and productivity. If in doubt consult an American/Canadian tax attorney.
931233
I absolutely agree with your point.   I owe no-one anything.  I make my own arrangements for Christmas.   I am a Pensioner.  I am financially secure.   I do not drink and I do not gamble.  I am therefore better off as a result.  I pay taxes on everything.\nI see no reason whatsoever why I, through taxes, should reimburse those who lost money in the venture.   Make the company directors and shareholders (if any) liable for the debts. That is the problem with this country, too many hangers-on and do-gooders......    ...............