Monday, November 16, 2009

As an individual shareholder, what are the tax consequences of a cash buyout of the Company?

Specifically, is it better to: a.) sell the shares now, realize my losses and deduct $3,000 from my tax returns for the next 10 years, or b.) wait until the buyout occurs? Under the cash buyout scenario, can I still deduct my losses? Thank you in advance for your consideration of this question.

As an individual shareholder, what are the tax consequences of a cash buyout of the Company?
There's no difference. In both scenarios, you turn in your stock and now hold cash. Selling now allows you to pinpoint the amount and the date.
Reply:I would learn what price the buyout values the stock share price. I would consider my gains for 2008 and offset all of the capital losses in 2008. In other words, sell one of your big winners to offset the big loss. Keep balancing your winner and loser sales to manage your tax liability. Consult your account if you have any special circumstances.


No comments:

Post a Comment