Capital gains on individual stock.What are my options on a stock I bought for 9 dollars a share (1000 shares)?

Question

and is now over one hundred dollars a share.I really don't want to push it much longer but who knows,it could go to 150 or so.I am in the 15% category,married 30-45k a year.........

Answer 1

Don't let tax considerations dominate your thinking.  Paying high taxes is good.  You want to pay lots of taxes.  It means you made money.

Many people will see a stock go up, have a huge paper profit, sit around worrying about the taxes, see the stock collapse.  The good news for these people is that they no longer have to worry about paying taxes.

Answer 2

<<<What are my options on a stock I bought for 9 dollars a share (1000 shares) and is now over one hundred dollars a share?>>>

If you have a capital gain you pay tax on the gain. That is true whenever you close the position and realize the gain.

Long-term capital gains are taxed at a lower rate than short-term capital gains. To qualify as a long-term capital gain you must hold the stock for over a year before you sell it.

If you have already held the stock for over a year you don't really have any options. You will pay tax on the LTCG when you sell the stock. The only thing I know that you can do to decrease the amount of the tax is to through a contribution to a charity. By donating the stock instead of money you got from selling the stock you save on taxes. For example, if you wanted to give $1,000 to a charity you could give them 10 shares of stock instead. That way you would still get a $1,000 deduction without ever paying tax on the capital gain. Of course, if you are not planning on giving a substantial amount to a charity that does not help you.

If you have not already held the stock for at least a year you need to decide if holding it until a year has expired saves enough to justify the risk.  (Do not attempt to protect your profit buy buying put options or by selling deep in the money call options if you have not held the stock for a year. Doing so will compicate you tax situation and increase the amount of time you would have to hold the stock before it could be taxed at the LTCG rate.)

If you want a really good on-line guide to capital gain taxes I recomment the Fairmark guide at

http://www.fairmark.com/capgain/index.ht...

---------------

Forgetting about taxes for a moment, let me say I think from a risk-managment view you probably should sell at least part of your position soon regardless of taxes. When you bought the position you were willing to risk $9,000 on the company. You are now risking over $100,000 on the same company which I am guessing is too large a percentage of your investments in a single company.

Answer 3

You've had one h**l of a gain there. I don't know what stock you have or what it's prospects are. But if Obama gets elected he's gonna tax that gain at 28% not 15%. I think I'd sell now. By the way, great investment. What did you buy?

Answer 4

Well, if it were me, I'd sell it immediately.

Because Obama has already said he's going to raise the capital gains WAY up if he's elected.

If you wait, you're going to get killed in taxes, if this guy gets elected (which is likely).

Of course, he could pull a "Bill Clinton" and raise it retroactively, in which case you would get screwed either way, because that's what he did.