A family member does not want to sell his stocks because he does not want to pay capital gains. Is there a way to re-invest the money he makes when he sells the stock so he can avoid the taxes?
2007-08-23 13:32:13 · 6 answers · asked by jenjen 1 in Business & Finance ➔ Investing
Nope , reinvestment will Not preclude taxes .
If the stocks have been held over a year ,
They would qualify for the long term rate of 15% .
Held less than a year , could be like 30% on the taxes .
The hazard of Not selling is that the stock value could decline far more than the tax amount would have been .
http://search.irs.gov/web/query.html?col=allirs&charset=utf-8&qp=&qs=-Wct%3A%22Internal+Revenue+Manual%22&qc=&qm=0&rf=0&oq=&qt=capital++gains
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2007-08-23 13:51:09 · answer #1 · answered by kate 7 · 0⤊ 0⤋
Yes, one of the most common ways to do this is with a charitable remainder trust. Depending on what he is trying to accomplish, there might be better options.
If you're in FL, OH, or NC, shoot me an email through Y! Answers.
2007-08-24 13:24:05 · answer #2 · answered by aaron p 5 · 0⤊ 0⤋
Hi, i recommand you a good and basic tutorial for investing. it covers all Issues related to your Investing and everything around it.
http://www.tutorialforyou.net/investing/
wish it will help you.
2007-08-23 23:32:42 · answer #3 · answered by Anonymous · 0⤊ 0⤋
It is better to make a profit and pay some tax, than make no profit at all.
2007-08-23 21:27:05 · answer #4 · answered by Anonymous · 1⤊ 0⤋
Maybe barter it for something?
2007-08-24 17:23:48 · answer #5 · answered by Smartass 4 · 0⤊ 0⤋
check this link its good
http://buyingandsellingshares.blogspot.com/
.
2007-08-27 10:34:32 · answer #6 · answered by Anonymous · 0⤊ 0⤋