Selling Stock Question(s)

Self ^ | July 28, 2012 | Self

[Graybeard58]

I'm retired but while still employed I bought stock in the company I worked for and my wife still buys stock in the company she works for. We've bought lesser amounts in other stocks from time to time with after tax money but these two are our major investments.

This stock was bought with after tax money, in her case through payroll deduction with a 15% company match, no match for me in addition she owns some company stock in her 401K. I understand the 401K is untaxed until she starts withdrawing and she will owe taxes on the full amount withdrawn.

We've never sold stock, only bought it. In both plans, dividends are reinvested and every year we get a statement and pay taxes on those dividends.

I don't foresee a circumstance where we will sell while I'm alive. My question is, if she sells stock after I'm gone, what will she pay taxes on? These stocks were bought at widely different prices over the years and I know she would pay taxes on the price appreciation but how do we know what shares were bought when and at what price?

I'm off to bed after posting this but will check tomorrow and appreciate any help given.

[Graybeard58]

Lots of good tips and answers here and I intend to follow up. the one that rates best is probably to seek professional help, especially since there are more complications than those I posted, I didn’t want to get into other complexities of my situation, to do so would reveal more personal information than I care to divulge.

I’ll proudly share one with you though:

“Two New Additions To Our Family”.

http://www.freerepublic.com/focus/f-news/2886877/posts

Everything my wife and I own, we own jointly and everything we own is willed to 4 of our children or they are co beneficiaries. Will change still to be done, to include our newest children, beneficiaries to be added and most importantly, a legal guardian/trustee to be named until our newest additions reach their majorities.

I’m 67, my wife’s 59, time to get off our butts and get these things taken care of. Thanks again for all the suggestions and help.

[oh8eleven]

I’m 67, my wife’s 59
Cradle robber :)
Good luck with your two new "additions" - you're a better man than I Gunga Din.