 Changing the tax code to something that makes sense? |
| It is critical to a responsive and robust economy that the USA maintain the current system of tax incentives balanced by tax rates. How else can the government provide economic stimuli when called ... |
|
 Why is my wife not getting stimu. refund when we filed jointly? |
| they only sent 900.00 i assumed it was house hold so my wife would get 600 i would get 600 and my 2 girls would get 300 each my wife is not employed but is still on the icome tax statements,they left ... |
|
 My employer deducts NJ state tax and I work in Texas. Can my employer stop deducting my state tax? |
Additional Details
My employer is based in NJ and I work as a consultant and right now the client is in Texas and I have been working at clients place.My employer says he is registered ... |
|
 How do you figure out how much tax is coming out of your paycheck? |
| say you make 500 a month, in the state of Texas, how much should come out for taxes?... |
|
 Are payments made to the IRS tax deductible for the following year? |
| I am paying the IRS 300-400 a month this year. Will I be able to claim this next year when I itemize?... |
|
 How much after taxes? |
Okay I am changing to getting paid bi-weekly instead of weekly here is the layout to help:
Right now I get 520 before taxes and 430 after taxes
If I start getting paid bi-weekly and get a ... |
|
 Benifits of co-habitation. My boy friend works. I am on disablity for lik e and he would like to? |
| for tax perposes to use me as a dependant. ( out of the 3000 he makes a week, gvmt takes 1000). Sure, in the long run, at retirement the extra income would be appreciated, but we have IRA's ... |
|
 What happens if you think there is a misprint on your W2 and you have already e-filed? |
| I noticed that on my W2 that the EIN number is the same as the state id number. I have already efiled my federal but not my state. Will the IRS reject it, and I have to amend it or will it affect ... |
|
 Two refund checks? PLEASE HELP!? |
| Okay so I received a refund check about two weeks ago. They had said (via. letter in the mail) that I had a few errors on my tax return papers so they corrected and sent me a check for the corrected ... |
|
| Is all the information on your last paystub going to match the info on the w2? |
| basically I am asking if you have your last paystub of the year and you are e-filing do you need your w2 to file your taxes?... |
|
 TAX CREDITS QUESTION. (England)? |
Handed in my notice at work but looking for new employment.
1. Wife gets child tax credit not working (4yr old to look after)
Q: will her allowance be affected.
2. I get ... |
|
 How to find out about authorized tax returns? |
| requesting information about tax returns release ... |
|
|  |
philipam2000 | My mother died and I received an inheritance of $31,000 in stock. I sold it. Do I have to pay tax on it? |
I received a notice from the IRS that I owe $6,600 on the $31,000 in stock that I inherited from my mother's estate (this is for 2006 taxes). I did not think I had to pay inheritance tax on this and certainly not this much! |
 |
 
MarineMom
 |
We also received stock from my father in law after he died and we did NOT have to pay taxes on it. However, you do have to fill out a Schedule D when you file your taxes and under the title Long Term Capital Gains and Losses where it says "Date Aquired" you put "Inherited" and the cost basis starts from the DOD instead of when your mother actually bought the stocks. So if you sold them right away and there was no capital gains (like in our case) you do NOT have to pay any tax on your inheritance.
You may need to fill out an Amended Return 1040X and submit it for last year and make the changes that I stated above so that the IRS does not count the $30,000 as your income when it is actually an inheritance. The IRS agent I spoke to also told me when I filled out an amended return that in the box at the bottom just explain the reason for the change in your tax return...let them know that you inherited the stocks after your mom died. You certainly should NOT have to pay $6,000 on your inheritance...I know that!
Sorry to hear about the loss of your mom too. I lost my mom too several years ago so I know how hard that can be.
If you have any questions just call and talk to an IRS agent and they will walk you through the process on the forms and what to put in each box for the stocks you did sell...they totally did that with us and it was a major help. Good luck! |
|
irongrama
 |
You do not pay inheritance tax, the IRS is billing you for income tax. I would guess that you did not include the sale of the stock on your tax return last year, and the IRS is billing you for tax on the entire amount sold. You need to file an amended return showing the sale of the stock. If you sold the stock as soon as you inherited it you would not have a gain and would owe no tax.
Tax is due on the gain you made, the difference between your basis in the stock and what you sold it for. Your basis in the stock is what the stock was worth on the date your mother died. If it did not increase in value between that date and the date you sold it you have no gain, and no tax due. If you held it awhile and it increased in value you owe tax on that increase not on the entire amount which is what it sounds like the IRS is charging you. If you held it a while and it decreased in value you would have a loss and have an additional refund coming. |
|
v b
 |
This should be fairly easy. Go to finance.yahoo.com and type in the stock ticker and the date of your mother's death--that's your basis. Then multiply by the number shares and compare that the proceeds. The difference is your gain.
You should only have paid tax on the difference.
Respond to the CP2000 with the above information. After all, you've got the death certificate and can fairly easily show that you received the stock by transferring after she died. |
|
Judy1
|
The IRS receives notification of stock sales. If you don't report it, since they don't know what you paid for it, they assume the entire amount was profit, and assess tax based on that. That's what happened here since you sold it but apparently didn't show it on your tax return.
You really don't owe anywhere near that, and might not owe anything at all. The amount that's your basis is the value of the stock on the date your mom died . You can find that amount by looking it up on Yahoo Finance or in many other places. What your REALLY gain is, is the amount you got from selling the stock minus its value on the date of your mom's death. You'll need to respond to the IRS letter and send in a schedule D showing the corrections. Be sure to do that within the time shown on the CP2000 letter that you got. The IRS is pretty easy to deal with on this kind of reporting mistake, but you do have to let them know what the real amounts were.
Good luck. |
|
stephenweinstein
|
There is no federal inheritance tax. The tax is a capital gains tax on the sale of any stock (not just inherited stock) for more than the seller's "basis" in that stock. However, the amount seems high; because you failed to file Schedule D and properly report the amount of your "basis" and whether it was long-term or short-term gain, they may have made assumptions unfavorable to you. If you amend your 2006 return by filing a 1040X for 2006 with a Schedule D for 2006, then you can pay only the proper amount of capital gains tax and not the amount that they are requesting. |
|
williamdp
|
You should of filed a Tax return. You need to talk to a tax professional now, dont wait. You may not owe that much tax. But dont wait, they will come after you. And folks do go to jail for not paying the IRS. You need more help that you will find here. So find a tax professional now, and I will give you a hint, HR BLOCK, they are not the ones for this.
There are rules to determine the cost basic for the stock and then the selling price, and then the profits and then the tax owed. |
|
HoffDNA
|
I think the rule does not apply to stock. Think about the variability in profit, depending on how long you held on to it. However, I am not an expert on this. |
|
▒♥▒♥▒♥▒♥▒™
|
We pay taxes on all and any monies recieved.
It sucks but that's how it goes. You can't have something without the government dipping in too. |
|
| |
|
| | |
| Questions List |
Answers | Last Post
| | | |
8 | 8 minutes(s) ago
| | | |
8 | 13 minutes(s) ago
| | | |
8 | 22 minutes(s) ago
| | | |
8 | 42 minutes(s) ago
| | | |
8 | 43 minutes(s) ago
| | | |
8 | 3 hour(s) ago
| | | |
8 | 5 hour(s) ago
| | | |
8 | 10 hour(s) ago
| | | |
8 | 1 day(s) ago
| | | |
8 | 4 day(s) ago
| |
|
Homepage 
Financial
Forum 
Taxes 
No Spam
Adult 
Gambling
Unfinished
Deception
Plagiarism
Not English
