shelter stock sale - Posted by Den

Posted by johnman on April 01, 1999 at 24:50:07:

That’s a good one Irwin.


shelter stock sale - Posted by Den

Posted by Den on March 31, 1999 at 16:32:39:

Good afternoon guys

could some on help me with this problem. Worked for a company for many years bought privately held stock, split many times, new company bought out old co… The new company bought the stock in the old co, made lots of money. Now I need help in sheltering the capital gains. Any ideas.

Thanks a lot


Donate to Charity - Posted by Dave T

Posted by Dave T on March 31, 1999 at 17:44:25:

Donate the appreciated stock to charity and take a charitable deduction for the full value of the stock. No capital gains will be due.

If you sell the stock and donate the proceeds to charity, you will have to pay capital gains on the proceeds of the sale.

If you trade your stock for real estate you will still be taxed on the appreciated value of the stock. 1031 exchange rules don’t apply since a like-kind exchange is not involved.

Re: shelter stock sale - Posted by rudy-austex

Posted by rudy-austex on March 31, 1999 at 16:47:30:

Setup a foundation.

Here’s one, and it’s fool proof too! - Posted by Irwin

Posted by Irwin on March 31, 1999 at 22:12:40:

The only way avoid capital gains on appreciated stock, without giving it to charity or incurring loss in an equal amount in the year of sale, is to die.
Your estate will get a stepped up basis to the value on the date of your untimely demise, and your heirs will thank you for holding on till the end.
If that solution seems unaccaptable, sell the stock, pay the 20% and go on with your life.

Correct, in addition… - Posted by JHyre in Ohio

Posted by JHyre in Ohio on April 01, 1999 at 07:23:23:

Make sure and weigh income taxes saved v. death taxes paid when using that strategy. Reminds me of a joke:

What’s the diffence between the govt and a hooker?

The hooker stops scre*ing you when you die.

John Hyre