Does Cashing out a stock count as income over last 6 mths when filing?

[inseriousdebt]

I liquidated some stocks in the early part of the year and wanted to know if this would count towards income for my last 6 mths.? I am hoping it does not, beacuse I am using it to pay back CC's, but I just want to be sure.

[time4cake]

Possibly

I am not an attorney, but I am a non-practicing CPA. I would suspect that liquidating stocks may be considered income to you if the sales price exceeds the basis in the stock. Did you sell them for more than you paid for them?

[inseriousdebt]

I don't think so....

Well they use to be worth a whole lot more...so probably not. I will have to check! Thanks for the info.

If they were more, would the difference be the amount considered as income?

[time4cake]

Unfortunately

Since a gain on the sale of stock is considered income for the IRS I doubt the bankruptcy court would look at it any differently.

[SinkingFast]

I sold jewelry back in November. I wondered the sale would be considered income so I asked about it during Consults.

Attnys asked if I sold for more than I paid. I said Nope. They said Nope.

They also wanted to be sure I could document what happened to the money. I said I have the receipt for the sale, bank statement shows the money being deposited into the bank account, and checks show it going right back out again to pay bills. They were fine with that.

If you sold for less than you paid for the stock, you should be OK. Just be able to document the amount of money and where the money went.

[inseriousdebt]

Employee Purchsae program

I don't know if this matters...but they were cashed out through my Employee Purchase Program that allows me to buy stocks with my paycheck....
???

[SinkingFast]

You still need to know the basis. The amount you originally paid per share for the stock. And what you sold each share for. Then figure your gain or loss.

If you have a gain, the gain is gonna be included in your 6 month income average. Not the total dollar value of the sale. Just the gain portion.

If you have a loss, the Court won't deduct the loss amount from your earned income for the 6 month average.

You should be able to contact your plan adminstrator and have them print it all up for you. Send you a statement. Tell them you need it for your personal files to keep for filing your taxes next year. They don't need to know you want the info for filing BK.