Question about US Capital Gains Tax

Business Money
1

Hey All-

I hold a quantity of a US bank stock that will soon be bought out by another bank. When this happens, I’ll have the option of either taking cash for my stock, or getting stock in the other bank. I’d rather take the cash and reinvest it elsewhere, and that’s probably what I’ll do.

My question is regarding the calculation of US capital gains tax. It’s my understanding that most people pay a flat 15%, but some people pay less because they fall under a lower Income Tax Bracket. Because I live and pay taxes in Taiwan, my US Income Tax Bracket is as low as possible. I’m hoping to get away with less than 15%.

I know many here also invest in the US and may have faced this situation before. Does anyone have any information or links that could help clarify this?

Many Thanks!

2

I usually end up paying nada…for the same reasons. Unless you’re making 83K US, you shouldn’t have much too worry about.

I used Turbo Tax last time, so I know I wasn’t cheating. :wink:

3

Thanks JD. :slight_smile:

Does the amount I make from the sale of the stock count towards my ‘income’?

If so, that alone will push me into a higher income tax bracket.

If not, it looks like I’ll get away with only 5%.

4

[quote=“mildsevenlights”]Thanks JD. :slight_smile:

Does the amount I make from the sale of the stock count towards my ‘income’?

If so, that alone will push me into a higher income tax bracket.

If not, it looks like I’ll get away with only 5%.[/quote]
No, it’ll be seen as unearned income.

I guess I’m not the only one who waited for June 15th to come. lol

5

That’s great news. Thanks for your help.

BTW, do you have any sites you go to to keep abreast of this kind of information? I tried the IRS site, and won’t be going there again. :laughing: