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PDtax
PDtax, Certified Public Accountant (CPA)
Category: US Tax
Satisfied Customers: 4623
Experience:  US tax pro. Big 4 tax experience, my own CPA firm for 20+ years.
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Would you be able to tell me how much a high-earning person

Resolved Question:

Would you be able to tell me how much a high-earning person (over $200,000 income) would get taxed if he were to liquidate two capital gain mutual funds totalling about $40,000?
Submitted: 12 months ago.
Category: US Tax
Expert:  PDtax replied 12 months ago.

Hi from just answer. I'm PDtax. I'll assist.

Do you know how much gain you want to estimate, and its character? Long term or short term gain, I mean.

I'll work up both federal and NJ taxes once you advise.

PDtax

Customer: replied 12 months ago.
I'm afraid that I'm asking for a family member and I don't have this particular info handy. I know the funds were acquired 15-17 years ago and my relative pays taxes on them every year.
Expert:  PDtax replied 12 months ago.
It seems like this investment is held like many mutual funds. Annual income and capital gains are typically reinvested in more shares.That means the sale is likely at little to no tax gain in the year of sale. Most of the growth has been reported and taxed already. Selling it just gets those monies back.If there is a gain in the last year, expect it to be taxed at about 40% combined, but I would expect very little taxable gain for 2016, given your report that taxes had been paid annually on the income/gains.Thanks for asking at just answer. Positive feedback is appreciated when I have answered your questions. I'm PDtax.
Customer: replied 12 months ago.
Hello, and many thanks for your answer. Just a couple of questions: if the MF has made a gain in 2016 at the point of liquidating it, does the full amount of its value get taxed at 40% or just the amount gained in the year? Thanks!
Expert:  PDtax replied 12 months ago.

Probably just the amount earned in 2016.

PDtax

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