How does transferring and selling stock affect one's taxes?
January 19, 2011 3:27 PM Subscribe
Question for a friend living in the US who is wondering about transferring and selling stock and its effect on taxes and tax bracket. His grandparents gave him some stock shares as a gift when he was a child in care of his parents. He would now like to transfer the stock to his own name and sell it to pay for school this year. How will this affect his taxes for the 2011 year?
posted by Hey nonny nonny mouse to work & money (3 answers total)
The amount of stock is significant, approximately $10,000. He is worried about losing financial aid for the 2012-2013 year if the stock goes on his 2011 taxes, as well as any taxes he may incur from selling the stock (is there a way for him to calculate these taxes so he can put this amount away?). However, he needs the money to pay for the Spring and Summer semesters of this year.
Will selling the stock in order to pay for school affect his tax bracket? Would it be better for his parents to sell the stock for him?