Income Taxes and Record Keeping ( tax ) Message Board

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Strategies & Market Trends : Income Taxes and Record Keeping ( tax )

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To: Kaye Thomas who wrote (2306)	9/28/1999 11:05:00 PM
From: William Sheppard	Read Replies (1) of 5810

Kaye, I'm currently in escrow on a house. I will be paying about $200K down, of which $100K is stock in my ESPP account, all purchased over the last two years with substantial appreciation (4x for some of it). I believe I'll get killed by taxes if I liquidate this now, but I'd like to protect the current value. I can get a loan from family for the amount of this stock, so I don't need to liquidate it right away. Will the IRS rules allow me to short the current number of shares I own now and then close out the short in January, thus at least protecting me until then? Is there any downside to that strategy? Alternatively, can I buy puts to protect the current value as long as the puts expire (or I close them out) before I liquidate the stock? Finally, do I only need to protect it until I've owned the stock one year, or is there an additional year of tax consequence due to the stock being purchased for 85% of the lower of the price at the beginning or end of the six-month plan period? Thanks! Bill

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