Capital Gains

Tax on the gain is due for the year of sale, unless you are getting it as installment payments. Maximum tax rate (LTCG) is 15%, regardless of claiming it this year or next year. Your intent (to sell or not sell) is irrelevant.

There is no provision I've heard about, which would permit you to spread the gain. Since you received payment during this year, you must declare the income on Schedule D, show your cost basis and the original date of purchase, and calculations will result in a maximum of 15% LT capital gains tax (starting at 5%, if you're in a low bracket). Bill

So do I.

Avaya perhaps?

That company was a spinoff of a spinoff from the AT&T breakup. I purchased the underlying AT&T stock in the '60s. My basis in Avaya was next to zero and darned near impossible to calculate. I had no intention of ever selling so that my decedents could take advantage of the step up and I wouldn't have to pay a huge capital gain. When Avaya was purchased (buy out) by a private entity it became a forced sale for me. The capital gains has to be taken this year. Now through no action of my own, the government will get a large part of the profit. I don't like it, but that is how it works. I am sure it is the same for you.

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-Ernie-

You have a gain or loss upon the disposition of your shares of stock. The basis and holding period of the shares will determine this. If you have an installment sale, the gain may be taxed in different years. I know nothing of intent in this regard. If you have any referneces to cite regarding intent to sell shares of stock or not, I would appreciate knowing about it. ___________________________________

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