I find the low $61 GAS price very strange too in light of the $66 offer. I was a former TEG shareholder and for the recent
WEC-TEG deal the TEG stock price was always much closer to the deal price before the close. Based on that experience I think there is relatively a very small chance of such a utility merger not closing. The state regulators will insist on a few bones for the ratepayers and that is routine. I'm not aware of any larger issue that could hold up this merger. The shareholders usually vote overwhelmingly in favor of the deals even the shareholdrs of the acquiring company. I would think that buying GAS here at $61 would turn out to be a great deal.
I had the same problem when my Heinz shares were all bought up by Warren Buffet, It created a tax event for me. So, what I did was donate those shares to my church and the other charities I support, instead of cash.
Doing that allowed me a deduction of the new higher price and no taxes paid.
Good point. If there a lot of employee stock options outstanding a split might be necessary but could go for that.
SO may not have enough shares authorized for a stock swap. If you remember DUK had to do a 1 for 3 reverse split in order to buy Progress Energy.
Would I rather have $66 or a share and a half of SO... I'll take the stock.
Please read all the words! I suggested giving the appreciated stock instead of cash to a charity that you were going to make a donation to anyway.
You're right, mlp distributions are not qualified dividends, They're even better, most of the tax is deferred until you sell your units. The trick is to never sell. If you die owning them your kids get the stepped up basis and no one ever pays the tax.
Check NGLS, APU, ETP
I think I'm talking to myself in the mrror when I read you, deedo LOL :-) I, too, have a grunch of T and VZ (mostly from the Judge Greene breakup and reaggregation) and am a "seasoned citizen".
In a nutshell, you hit it on the head. I don't object to the transaction, I own and like GAS and SO very much and think it makes sense (although I'll miss the diversification of a standalone gas company) . My objection is the structuring.
Sooooo......donate your gain AND your basis to avoid a, say 20%, CGA hit ? Thanks but I'm not Bill Gates et al. I'm in the business of making $ for myself, not give it away thenk you veddy mush. LMAO
I was self-employed so I set up my own retirement plan, which was a precursor to a 401(k) so I never had any IRAs. IRAs were fairly restrictive until the later 1980s, and by then I was mostly retired.
I have no losses so I can't write off anything. I don't want to sell GAS if there's any chance the merger does not go through. I may donate the stock this tax year and just take it as a write off that way, because then I can deduct the whole market value.
On the other hand, perhaps the grim reaper will call for me before the merger and that will solve everything. :)
One thing you could do would be to donate the stock to your favorite charity instead of donating cash. I believe you can take a charitable deduction for the full value of the stock and not have to pay taxes on the gain.
Well Medicare is means tested but its still fairly inexpensive compared to other premiums. I have few more years to go. How does mandatory IRA withdrawal affect you if at all? However is doesn't affect SS. Do you get a better result if you split it between 2015 & 2016? Do you have any losses to apply? You have a problem millions wish they had.
I worried about gains taxes too back in 1999. 1 year later the market solved that for me. I wish you luck.
BTW, I wasn't assuming you were a two-bit player. I just have no idea what the size of someone else's portfolio might be nor what someone's age is or other factors. I suspect I'm much older than you. At my age, I don't like change when it's imposed upon me suddenly. A forced sale is like someone monkeying with my portfolio behind my back.
Thanks for your suggestions, but I am black all across the board in my portfolio. I have no losers to sell to offset the gain.
MLPs are not subject to the qualified dividend rates.
Yes, I know, I can't complain too loudly about the gain, but this is not the first time this has happened in my portfolio. I've held other great dividend stocks that were subject to a forced sale. I hate when that happens.
I've thought about SO in the past. I may do that. However, that will not negate the tax hit. I wish SO was doing a stock swap for GAS, because that would mean no capital gains.
If you are retired and receiving Medicare, then a six-figured capital gain will increase your Medicare premium. As well, the low capital gains are not infinite; at a certain level, as will happen for me, it will trigger the higher tax rate that resulted when the ACA passed.
again you make assumption . I'm not a 2 bit player. been in the markets since 1972. I am retired I trade full time as well as invest. You worry to much about the tax man. Taxes on cap gains are very low historically.
JM, it all depends on how many shares you have versus how many I have. The more shares, the more the gain pain. ;)