Figuring out taxes on UTMA account (inherited/TOD)
So my wife got access to her UTMA account today. We were looking at options of using to help pay off a lot of the funeral costs we had to incur.
She was told she may incur capital gains taxes. From what I read a lot of it depends on the age of the account, our tax bracket, etc.
So I guess fidelity because of her new name (marriage) created a new account for her and transferred everything over. So we have no idea how that would be handled in terms of potential taxes. cannot find how old the account was before or what was originally put in.
Thu Jul 23, 2015 2:52 am
lmbebo New Member
Cash: $ 1.55
Joined: 09 Jun 2011
Never mind. They are long term investments and will be taxed at 15%.
Thu Jul 23, 2015 3:49 am
clydewolf Senior Member
Cash: $ 50.25
Joined: 27 May 2012
quote:Originally posted by lmbebo Never mind. They are long term investments and will be taxed at 15%.
The capital gains could be taxed at 0%.
If your highest tax rate is 10 or 15% the long term capital tax rate is zero.