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Liquidating stock after death


However, if the decedent lived in a state with an inheritance tax and you were not their child or grandchild, you may end up liquidating stocks after the death to pay the inheritance taxes.

If you inherit stock, you...

If you inherit stock, you will not have to pay capital gains taxes until you sell your shares. If you are liquidating stocks after a death, you may owe capital gains, but the amount may be relatively insignificant if you sell them soon after receiving them as part of your inheritance distribution.

Liquidating stock after death difference is your gain or loss.

If you held the stock for less than a year, you pay the short-term capital gains tax. Because the federal exemption is so high, most people will not have to pay any taxes on inherited stocks, and most estates will not to have to file estate taxes.

The same holds true for inheritance taxes, which are paid for by the recipient. Currently, 12 states, along with the District of Columbia, impose estate taxes on death, and six states impose an inheritance tax.

If the decedent lived in Maryland, expect an Liquidating stock after death and an inheritance tax. The 12 states with estate taxes as of are: The six states with an inheritance tax as of are: The long-term capital gains rate is zero for those in the 10 to 15 percent tax bracket, 15 percent for most tax brackets above 15 percent up to 35 percent, and 20 percent for those in the The short-term capital gains rate, for assets held less than one year, are 10 percent, 12 percent, 22 percent, 24 percent, 32 percent, 35 percent or 37 percent, based on your income bracket.

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