Ok, ordinary income rates on the depreciation recapture portion of the gain. That would be limited to something close to her original purchase cost. So, I guess, limiting the number of units sold each year to an amount that does not bump the seller into a higher tax bracket is the way to do it.
But my other question still should be considered. Selling just because one is retired could be a mistake. The world doesn't come to an end just because one retires.
No, but one of the main reasons I wanted to sell KMP when I first posted was I expected the market to go down a lot after the election when the fiscal cliff issues came more into the spotlight. Since I was heavily invested in stocks I wanted to reduce our exposure. I sold about half of my investments in Sept (ex: Apple at $666) and a bunch of mutual funds, but I questioned selling KMP because of the tax issue. As I said, I have held it a long time. Had I been able to, I would have sold around $85 a share, and would be able to buy it back today around $75. So I am hearing from this board that I can't buy/sell KMP like a regular stock. I just have to ride it down when the market is bad and hope it recovers?