Tax Rate on Sale of Stock?

[miatax]

I should know this off the top of my head, but with my other jobs I can't recall now...

I have a client who may sell his share in a privately owned US corporation with 3 shareholders (1 of which is him and he receives salary for daily operations) to a company in the U.K. How is he taxed when he sells his share? Cap gains or ord income rates? What are the rates for 2008? (I am not sure since he also works for the company he may sell).

Thank you.

[Elrod]

miatax,

Hear are a couple of places I would look.

You may find them helpful.

http://www.irs.gov/faqs/faq-kw185.html

http://search.irs.gov/web/query.html?col=a...search%27%29%3B

[kcjenkins]

Most likely it is going to be a Sch D capital gain sale, but you may have some work to do to calculate his basis in the stock. Of course, what percentage he owns of the total might make a difference also, if it's a Sub S corp.