Elle wrote:
> Doree, as Richard implied, you want to evaluate carefully
> whether to sell this stock all at once. Two things to start
> evaluating before you sell any of this stock:
>
> 1.
> Depending on your income level and the stock's basis, you
> may be able to pay no tax at all on your sale. A special low
> tax rate for long term capital gains kicks in starting this
> year, but only up to a certain income.
Doree - you may have some zero bracket cap gains rate available to you
if your taxable income is under $32,550. You have a Standard deduction
of $5450 plus $1350 due to your age, as well as a $3500 exemption. (this
all totals $10,300).
For example, if all your income adds (after subtracting that $10,300) to
$20,000, you can take $12,550 worth of gains and pay no taxes.
This zero rate is available for three years 2008-2010, so depending how
much you have in gains, spreading over three years may save you some
money.
Joe
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