Archive for October, 2009
Scenario:
1. I have a $6000 stock loss that I’m never going to recover. I’m ready to sell.
2. I have a mutual fund that has long-term gains. It will cost me 1% redemption fee to sell.
What is the better option and why?
1. Deduct the $6000 ($3000 at a time) from my income in successive tax years. I’m in 28% tax bracket. CA State Tax 9.25%. (I’m not smart enough to figure the math on this.)
2. Sell $33,000 of the mutual fund shares (this will generate $6000 long-term gain). Pay the redemption fee of $330. Use the $6000 gain to offset the loss. Reinvest the $6000 in another mutual fund.
Craig Ricco
Intel is doing it (No details yet though)
Cardinal Health has done it
I am sure a lot more US-listed corporations out there have done it.
Where can I find historical examples of the terms around a value for value (sometimes called a value neutral) stock option exchange?
For example, I am curious about which outstanding options were eligible, which ones were ineligible, what the terms for the exchange were, as well as old and new vesting dates.
Vertie Servin
Dear all, ,
I don’t know much about stocks and neither does my father. Here is the situation that need your help. Please give me your best answer.
My father has worked in a big company in California and he has per say 1000 shares of stock option at price of $2. We are not sure if we should exercise this stock option or not because we hear so many different version of tax issue. His company will go IPO possibly next year at price around $15, we were told we can only sell our stocks after 6 months of IPO date once we exercise.
Question:
1. Should we or should we not exercise it and wait till it IPO? It is a healthy company.
2. Does anyone know about this TAX issue? Some say once we exercise we have to pay accrued tax on gain of ($15-$2)x1000S/H, is this ture? If yes, are these tax due right away or due on next year’s tax season?
3. What is the process of exercise stock options?
Thanks for you help so much!
Rickey Ynocencio























