If they were not, in a sheltered account , what would you do then ?
I live in Canada, and the capital gains taxes are very heavy, approximately 38.6% or so, with NO allowance for LT or ST capital gains...
I was thinking of doing the following with my 2001 LEAPS..
In January 2001, I have lost all time value, but have participated in (probably) another TECH SEASON. I then exercise my LEAPS in Cisco, AOL, SUN , EMC, DELL etc etc... and get the common..
Since they will all be ITM, I get the stock, the rest goes on margin... I think then I pay NO Taxes, because I got the stock which I have not sold (Am I right here ? people ?)
For my 2002's, which are my 3x Qcom Leaps, (as well as some MSFT, CSCO and SUN), I do the same thing...
Am i right here, if ALL of them are in taxable accounts ?
Should I exercise in that case. to minimize taxes. If I sell them, I will get a whopping tax bill no ?
Also, I do have some LEAP's in a non-taxable account. Those I suppose I should sell, and re-enter with ITM strike prices, but enter in 2003/2004's LEAPS no ?
Let me know & take care
Jean
P.S. If you guys want, I will create the new OPTIONS/LEAP thread, so we can get started...
BTW, I never had much money to start investing, as brokers and financial planners lost me a fortune, PLUS since I was in Canada, my dollar was devalued by 40% in the last 5 years... So at the time, I was invested in crappy canadian companies ( No NT, JDSU and Celestica then), and missed the US bull run until 1998 or so.
The point of this story was that:
1- Until I took control of my finances, I did not make any headway in my financial security.
2- Until I did not invest in the USA, I also did not make much progress.
3- the real important one, LEAPS made my little nest egg grow much faster, in the stocks I knew and loved...
SUN, Cisco, MSFT, and now Qcom and others...
I now have (which is nothing compared to the real heavy hitters in SI) about $ 475,000,and I started with 30,000 in 1998 (early)... I also have accumulated losses for tax purposes, made mostly by my "previous advisors" of about $ 30,000 or so...
LEAPS have helped me immensely, but you must be willing to lose a lot of it (as happened with my Dell Jan -March 1999 LEAPS which have declined 50% this year, as the stock languished...)
enough rambling
Let me know people what i should do with my LEAPS |
