How do i sell stocks that my father left in his will. Will i have to pay taxes?

Question

How do i sell stocks that my father left in his will. Will i have to pay taxes?

Answer 1

have all the taxes of the estate been determined and paid yet? you need an accountant to help you come up with the cost basis of the stocks at the time he died - that should be your cost then - if they have gone down in value since then - you would have a loss when sold, and you wouldn't have to pay any income tax -

Answer 2

Where are the stocks now?  If they are with a brokerage firm, contact them.  If you now own the stocks, you just need to tell the broker to sell them.  

If you have the stock certificates (very unlikely), take them to a brokerage firm and go from there.

You will receive a tax document, Form 1099B, for each transaction.  You use this document, plus the value of the stocks when you inherited them, in your tax return.

The difference between the selling price and the value when you inherited the stock will be taxed to you.  The maximum tax you will pay on this gain is 15%.

Answer 3

For someone not too familiar with stocks I'd give this advice:

Your bank may have a brokerage service. I'd start there. Call them. If you have the actual certificates it's best to take them to the bank and deposit them in a brokerage account. Then you can sell the shares. The brokerage account can be tied to your checking or savings and the money from the sale would be deposited there.

Yes, you will have to pay taxes on the capital gains (profit above and beyond the value they were purchased).

Answer 4

Your basis in the stock is what they were worth on the day your dad DIED.  You do not use the amount he paid and you do not use the amount on the day you get the title transferred to you.

Contact your broker or the investor relations of the company that issued the stock.  At a minimum you will need the death certificate, probably the estate's EIN and proof that  you are the owner.  (An executor usually does this step.)

Answer 5

It sounds like you need to talk to a tax accountant.  Look for an enrolled agent - someone who has gone through the IRS testing process to establish their creditials.  If your father had a financial advisor or broker, you should contact them.

You will need to know the cost basis for the stocks - that is the price your dad paid for the stocks when he bought them.  There are several different ways to figure out the gain or loss from those stocks, so if you are not familiar with the process, or don't want to take the time to research the process, you would do well to talk to professionals.

If the stocks increased in value over the years, then you will pay taxes.  If the stocks decreased in value over the years, then there will be no taxes due and you probably can reduce the taxes on your regular income from the