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Do you know what type of tax you have to pay on those funds? Is it capital gains tax?
by Shamiq 18y ago
Do you know what type of tax you have to pay on those funds?
Is it capital gains tax?
- dpifke 18y agoAt the Federal level, long-term capital gains tax, since it's the profit from selling shares (not options) in the company which I owned for more than a year. At the state level, California treats everything as regular income. It's considered an "installment sale", meaning I can defer paying taxes on the escrowed amount until the tax year in which I receive payment. There are some limits on this that I don't fully understand, which I paid my accountant to figure out and justify to the IRS if I get audited.