Stock Sale

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I sold stock this year, 2019, for a long term capital gains. How should I enter this into special receipts? What changes should I make to the Individual Stock values I entered in Assets and savings as of 31Dec18?
Also, How is the "Capital Gains Inc", shown in the Federal Taxes details, calculated. The value there doesn't match the actual Cap Gains.
Thanks
James

Comments

James,
Please open a support ticket, upload your database, identify which profile this is about, what you expected to see, and I'll take a look at it.

Long term capital gains taxes on regular assets are controlled by the Capital Gains settings in the Taxes tab of Assumptions for the percent share of capital gains and the unrealized capital gains in your regular asset account.

In general, total capital gains equal the percentage share of capital gains of earnings in the regular asset account plus the proportion of capital gains on withdrawals from regular assets based on the ratio of unrealized capital gains and the total balance in the regular asset account.

Hi Mike, No need for a support ticket you answered the Capital gains question. I have to recalculate what portion of my regular assets are capital gains or dividends. That should fix the "error".
Thanks
James

James,
I described how we currently tax current and future long-term capital gains and qualified dividends, i.e. when they are earned, not when they are realized.
That is, each year's return on regular assets is taxed in the year the return is earned, either as ordinary income or as capital gains, based on the percentage of taxable Regular Asset income that are long-term capital gains or qualified dividends that you specified in the Tax Assumptions.

However, we are in the process of changing this to taxing current and future capital gains to when they are realized in withdrawals, rather than when they are earned.

We plan to implement this change within a couple of weeks.

Thanks Mike, That will be an important improvement. Can you comment on the approach I used to account for selling stock this year from my taxable brokerage account? Here's how I entered the data.
Using the stock's values on Dec 31 2018 I reduced the "Individual Stocks" amount in Assets and Savings by this value. Next & split the special receipts into two parts. The stock's basis I entered as a non taxable Income event. The LTCG (profit) I entered as a Taxable income at capital gains rates. One last item, I reduced the value of the unrealized capital gains in the economic assumptions/taxes tab by the stock's unrealized cap gain value on Dec 31st. I did not change the Share of "taxable regualar asset income" because I believe ESPlanner places the sale income into the Regular Assets bucket.
Thanks
James

Hi Mike,
What's the status on release of the update which changes the way ESP handles capital gains taxes?
Thanks,
James

Darryl will answer this when he get back in a week or so from his trip.

What's the status of this update?
Thanks
james

dan royer's picture

The engineers say it should be in the next release of ESPlanner for 7/26/2019

James,
Your approach is correct.

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