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Second Question

As I noted when y'all were kind enough to help me provide some info for my son, I have a question for me. Many years ago when Metropolitan Life went public, those of us with polices were issued stock, at no cost. Since my Dad was a Metropolitan agent, I only had their insurance and wound up with nearly 200 shares of stock. I think the initial price was about $14.00. As I read my pub 14, depending on income, my long term capital gain tax will either be 15% or zero in 2008. It will be close. One factor is, again, since I did not pay for the stock, is the gain the difference between $14 and selling price or $0.00 and selling price? I doubt that there are fees for the transaction, because all I have to do is call them and tell them to sell (as I understand it). And, I don't understand the possible 0% tax rate. Certainly the Feds are not going to let me collect this money w/o any taxes. I don't mind paying the taxes any more than anyone else, but do want to ensure I pay estimated taxes this year if required. TIA again!

Reply to
Roy Starrin
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"Roy Starrin" wrote

As the law ~currently~ stands, yes, they will.

Plan to make them (if necessary) based on when you sell the stock, only then can you determine the tax ramifications.

Reply to
Paul Thomas, CPA

First, your gain is the net sales price less the cost basis. For demutualized stock such as yours, the cost basis is zero. So the gain is your net sales price.

There is a lawsuit is Chicago challnging the cost bais being zero, but unless the court rules against the IRS position and you live in that Court's jurisdiction, assume the basis is zero.

Yes, the former 5% rate is now zero starting January 1 2008. The 15% LT Capital Gains rate remains 15%.

Reply to
Arthur Kamlet

Reply to
ebetts3

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