Q. When I was a kid I got some stock as a gift. Stock has split quite a bit and now, I don't even know what I own and how many shares. I just want to get rid of it. What is the best route to take?
A. I assume you have the actual shares somewhere.
If so, you first need to find out when the original shares were issued (it is on the stock certificate). (This will be for your taxes) Then you need to find out what the share price was on the day they were issued. (You can get this from the broker when you sell them) Then you can go to any discount brokerage firm, like Scottrade, or even your bank, and ask them to sell the stock for you. They will charge you a nominal fee of $20-$50. Keep the transaction information for when you do your taxes. You will owe long term gains on it.
If so, you first need to find out when the original shares were issued (it is on the stock certificate). (This will be for your taxes) Then you need to find out what the share price was on the day they were issued. (You can get this from the broker when you sell them) Then you can go to any discount brokerage firm, like Scottrade, or even your bank, and ask them to sell the stock for you. They will charge you a nominal fee of $20-$50. Keep the transaction information for when you do your taxes. You will owe long term gains on it.
Is there a way to prove who sold my stocks over 25 years ago?
Q. I was gifted stocks and bonds as a child and my mother died when I was 10. Relatives have argued over the years about what has happened to them. Is there a way to research this?
A. It would be very difficult to obtain this information because most companies only have to keep records for about 7 years. You may want to check with your State to see if the funds were escheated. Make sure you check your mom's name because she was your guardian.
If you believe it was a large amount of money you could hire a lawyer, however, this may ruin your relationship with your family.
Good luck!
If you believe it was a large amount of money you could hire a lawyer, however, this may ruin your relationship with your family.
Good luck!
What does "Only gift tax attribitual to appreciation" mean?
Q. In my tax class we had a problem where 1 person gifts stock worth 100,000 to his son. The person giving has a basis of 40,000 so his son would then take that basis. It also mentioned that the person giving paid 10,000 in gift tax on the transfer which is only added to the receivers basis if "attributable to appreciation". The teacher said it wasn't and took 100,000-40=60,000/100,000=.6*10,000=6,000 making the receiver's basis 46,000.
What does attributable to appreciation mean?
What does attributable to appreciation mean?
A. Appreciation is the increase in value since the original purchase.
The calculation is a proration of the gift tax between the basis and the appreciation.
Of the $100,000 in stock given to the son, $40,000 of it is basis and $60,000 of it is appreciation.
So, of the $10,000 in gift tax paid, $4000 of it is attributable to the original basis ($40,000/$100,000 x $10,000) and $6000 of it is attributable to the appreciation ($60,000/$100,000 x $10,000).
The calculation is a proration of the gift tax between the basis and the appreciation.
Of the $100,000 in stock given to the son, $40,000 of it is basis and $60,000 of it is appreciation.
So, of the $10,000 in gift tax paid, $4000 of it is attributable to the original basis ($40,000/$100,000 x $10,000) and $6000 of it is attributable to the appreciation ($60,000/$100,000 x $10,000).
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