Q: Have private stock in my dad's estate for a family business. Would I pay taxes on the sale?
The person looking to buy is my uncle, he offered 90,000 between my two brothers and I. Would be pay taxes on the 30,000 each. The stocks still in the estate and the offer is to give money to the lawyer who would then write the checks to us and the stocks would never technically be ours. Is there taxes involed on this? There was also a key man agreement but that went missing at some point.
A: As you get a stepped up basis in any inherited stock, there is no tax to you for this sale, if the proceeds are distributed to you.
A: Only the owner of the shares can sell them. If the shares are estate assets then the executor or administrator can sell them on behalf of the estate. Depending on the circumstances the estate might have a taxable gain, but if the cash after taxes is distributed to you and your brothers as heirs of the estate you would not not be taxed.
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