Question regarding short term capital gains. Please help!

[cslewiscat]

I am considering selling a biotech stock in the next few weeks if the FDA gods are favorable with an approval. However all stock owned in this company is less than a year old. Thus they will all be taxed as ordinary income. My husband and myself typically make less than 75,000 dollars a year and file taxes jointly. If the stock is sold at the price I anticipate it will be worth approximately between 400,000 to 500,500 dollars.
    This being said, can I anticipate that the tax will be 35 percent, or will the IRS charge an even higher percentage, considering we will have surpassed the 200,000 to 250,000 yearly income.
    Thanks in advance, and any other comments or advice would be sincerely appreciated.
     Sincerely,
     Shannon Sawyer
 

[atari]

Hi,

Welcome to the forum.

You say your income from the stock sale will be some 400,000 to 500,500 dollars. You do not mention how you received this stock. Assuming you purchased -  do not forget that you can deduct the cost of your stock purchase from the income you receive when you sell the stock. You consider the net income in your taxation. Depending on how much your final net income or profit is, that determines your tax bracket.

Take a look here for 2009 tax rates schedule. The 2009 tax table on this page shows you tax brackets for both filing single and filing married. Select your option from the Filing Status drop down menu.

Cheers.