Sea-tax, are you out there? This one is right down your alley.
The reason I am having to pay tax this year is because four of my stocks were bought out by "private equity" firms. I have had a couple discussions about this on this board, and won't revisit the reasons behind this.
But this really turns the table on investment tax strategy. With a sufficient number of individual stocks, you can always sell your losers in December and keep your winners as a tax shelter. But if you are FORCED to sell to a private equity firm, it is almost always at a very prodigious gain.
Even though the profits are nice, I would rather retain shares of a company with a good future, plus not have to pay tax on the sale.
All of us are taught in the textbooks that common stock has a pre-emptive right to retain ownership. Whatever happened to this? I believe the various states have "sold out" to the big corporations and changed their regulations to allow takeovers from those who have pre-emptive rights. Question 1: when you are shopping for a stock is there any way to determine whether your pre-emptive rights are guaranteed? and Question 2: do any other strategies exist to avoid the "private equity" buyouts?
The reason I am having to pay tax this year is because four of my stocks were bought out by "private equity" firms. I have had a couple discussions about this on this board, and won't revisit the reasons behind this.
But this really turns the table on investment tax strategy. With a sufficient number of individual stocks, you can always sell your losers in December and keep your winners as a tax shelter. But if you are FORCED to sell to a private equity firm, it is almost always at a very prodigious gain.
Even though the profits are nice, I would rather retain shares of a company with a good future, plus not have to pay tax on the sale.
All of us are taught in the textbooks that common stock has a pre-emptive right to retain ownership. Whatever happened to this? I believe the various states have "sold out" to the big corporations and changed their regulations to allow takeovers from those who have pre-emptive rights. Question 1: when you are shopping for a stock is there any way to determine whether your pre-emptive rights are guaranteed? and Question 2: do any other strategies exist to avoid the "private equity" buyouts?