well I heard from IR this morning after sending in a request last night but I have been out working all day, here is the response. EVeryone has to recognize losses or gains as of conversion date, a new holding period starts at the price at inversiion. This somewhat good news as it gives me a short term loss this year and a lower cost basis for long term gain. But I will have to delay some deductions such as charitable giving as this will reduce my stock income by 160k this year which I was not expecting and since I am retired almost 90% of my reported income is stock gains this will change things dramatically un less I do a lot of profitable daytrading between now and year end. I may even pay my property taxes jan 1 with a penalty rather than lose some deductions.
my accountant doesnt know, so I have written to IR and will let you and the rest of the board know thier response as I am sure there are others in my situation who have no intentions of selling in the near future and this will greatly effect my tax planning.
I am referring to the IRS rules that say that on an inversion all profits and losses are realized upon inversion even though you are still an owner and have not sold. Since I am in at an average of 13.95 on 32k shares this would be a rather large loss and I really need to know so that I can plan appropriately as 90% of my income is from stock trades and therefore if I dont have much income I will lose a lot of deductions such as charitable contributions which means I need to delay those until 2015. as my deductions could be larger than my income.
for nice round numbers lets say I have 20k shares at $14 per share and the inversion closes and price is $9 do I get to show a 100k dollar loss on my stock? or is the loss carried on and only gains are paid by IRS regulation
I would agree sold all my 8k shares at average of 42.15 looking to buy back under 40 next week if not I booked 25k in profits and will be happy
I will give you a prediction, todays rally wont hold but sell back to 40 once again and then gradually improve with the market, I sold all 8k shares I owned today above 42.10 will buy back at 40 or so
well since your vision is so good why dont you tell him why it is down? but it was about where it was preearnings and the overall market is down so those statements are correct now share some of your wisdom for us 2 blind people.
I took a 160k haircut and I am not happy i have 32k shares and this is not a good move, I am sure that they had discussions with escripts and CVS before this happened and they did not give stockholders any lead that this was happening and I dont believe that they havent known of it being possible for 4 to 5 months. This is a material event that should have been disclosed a long time ago and management has dropped the ball on this one.
I am very long but your statement is ludicrous, the fact is that the market looks beyond 2014 and if they dont get their act together with escripts and CVS we are screwed. they are not big enough to fight those boys and I took a 35% haircut on this and they need some better answers than that BS
4 or 5 months ago when this was mid 70s and people were calling for PS of 100 by end of year. doesnt look so far off on price now does it? actually it looks like a slam dunk. GLTAL
odd that you are so uninformed, first it is about where it was preearnings and the dow has gone down over 400 pts, I think that is pretty good for the overall market, odd that you are so blind to what is really happening.
no it had to be GB or the republicans fault not Obama the god
well the sell off caused me a 250k dollar loss so far.so I am not assured of his intelligence as I dont get cheap stock options.
and a lot of other people and that is why we got Clinton, you may not like one but you cant waste your vote and put worse in. sometimes you have to compromise and vote for second choice so you dont get last choice.
what amazes me is that for years we have been sending jobs overseas especially under Clinton and
congress is silent but send the profits overseas and cut their spending money and they raise hell. Well I want the jobs back anhed I am retired so that is not a self serving wish. I wish it for my grandchildren. They need to quit wasting funds on crazy art and studies over why rats procreate and funding of our enemies including our worst Saudia Arabia. If Ron Paul wasnt so crazy I would vote for him.
the next thing you will tell us is the republicans invented Sovaldi when we know it is a bunch of pig bottom boys that did it in SF. Why cant Obama take credit for the fact that he is incompetent as a President.
Obamacare was destroyed the day Pelosi passed it and said we can figure it out later, with no help from the republicans it was bound to not work, democrats dont work. lmao. It is only a matter of time before the public elects enough politicians to recall Obamacare. The subsidies are defunct and now by next year less people will have insurance than before Obamacare was in effect.