Estimated tax tip savings. The example in this article explains how one taxpayer can save $600,000 on the sale of her C corporation stock. Depending on your holdings, you could save even more.
Thanks to a provision in tax code Section 1202, as of 2015 you can save thousands or even potentially millions of dollars in taxes just by waiting five years to sell your C corporation stock.
This windfall tax benefit does not apply to everyone, but if you meet the requirements, then you can exclude up to 100 percent of the income when you sell your stock. Because the rewards are potentially so great, it’s worth checking to see whether this strategy can work for you.
To qualify, you have to be a little lucky (or very smart). First, you have to meet two rules that are not always under your control:
You acquired your stock at the right time.
You own the right kind of stock.
Let’s start with an example that will help you see whether you meet these criteria, then lay out a plan to make sure you ... Log in to view full article.