Tax on second small income

amby1556 · Apprentice Joined: 11 Feb 2008 Posts: 2

I have recently inherited stock shares from my father. My wife thinks that we should sell our shares and invest that money in something else. I’m not sure that we should sell them now, their price is good and I expect them to grow more. I’m also interested in taxes. Am I obligated to pay tax when I sell my shares? I already have a business and pay taxes. Is this considered as second small income?

barnabe87 · Apprentice Joined: 14 Jul 2009 Posts: 2

I strongly recommend that you first decide what to do with your shares. It is not wise to sell your shares before comparing their possible growth with other type of income. Also, you may find some other shares with greater growth, but their value can be fluctuating. The value of shares depends on a performance of a business. When you decide to sell your stocks at a better price, that amount represents your income and you will be obligated to pay tax.