QUESTION
How will inherited company shares affect my taxes?
Asked on Jul 11th, 2011 on Taxation - Florida
More details to this question:
I unknowingly inherited 5% shares of a family company. I have never dealt with anything moneywise or even signed anything for the company stating I have shares. How will this affect my taxes?
1 ANSWER
You won't have to recognize anything until you dispose of the stock. At that time, if you sell the stock for more than it was worth at the time it was bequeathed to you, you will have to recognize a capital gain. Likewise, if you sell if for less than the value it had when it was bequeathed, you will be able to recognize a capital loss.
Answered on Jul 12th, 2011 at 12:21 PM