Hi Rose,
I need vour very valuable help...
I bought 4x JDSU 120 June 2000 options last december in 1999 (there was a split, so they were actually 240's)
I paid 10,200 USD for them , ot just about...
I posted this somewhere else, here is my problem, apart from living in Canada (nice country, insane taxes)
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I have a problem though..
My 4x JDSU 120 JUne 2000 options
They are in a non-registered account or a taxable one, (not an ira) and I live in socialist paradise, Canada
Taxes on my capital gains would be...
75% of the total gain = .75% X 40,000 USD = $ 30,000 USD Taxable X 1.45 (Exchange Rate) = 44,000 Canadian dollars...
Taxes on 44,000 would be... are you ready.... 50% (at my income)
I would have about 16,000 or so USD left... Is it still a good idea to sell them now and buy the common or do I exercise in June......
IF I exercise in June, I will lose the time premium...
10K ?
BUT , when I exercise, I get 400 shares at 120 USD, and the cost of the option(s), 10K is ADDED to my 48,000 USD purchase...
No tax event is created, only if I SELL JDS in the future, and I will not, not for some years anyhow ?
Any ideas people, Am I readin this right ?
Take care
Jean |
