My mother passed away in May. She had stock in a power company the stock was sold for 4100.00 do I have to pay taxes on that?

6 Answers

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  • 3 weeks ago

    Her estate must pay taxes on the capital gain.

  • Eva
    Lv 7
    3 weeks ago

    It depends. If it was sold within the estate, no. If the stock was distributed to you and you then sold it, you would be subject to capital gains taxes on the profit. Your basis in the stock is the price it was on the day your mother died.

  • Judy
    Lv 7
    3 weeks ago

    Only on any appreciation after she died, for federal tax, unless it was in a tax deferred account. State tax depends on your state: in most states, no.

  • Kenny
    Lv 7
    3 weeks ago

    Not of you inherited it .  Like NA said only on money after you took possession .  The fund should send you a 1099 .

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  • 3 weeks ago

    Probably not on all of it.

    1. If the stock was worth less than $4100 when she died, then you have to pay federal capital gains tax on the increase in value that happened between her death and when you sold the stock ($4100 minus what it was worth when he died), but not on the full $4100. If it was worth $4100 or more when she died, then you do not pay this tax, but you report the sale anyway.

    2. In you live in one of the few states with an inheritance tax, then you may have to pay inheritance tax on what it was worth when she died (which could be more or less than $4100).

    3. Although your question asked on tax on the money for which the stock sold, there is other money that you got from the stock that is taxable and you did not mention: You must pay income tax on the dividends that you received from the stock during the time between when she died and when you sold it.

  • NA
    Lv 7
    3 weeks ago

    Only on the gain since May.

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