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Technology Stocks : Intel Corporation (INTC)
INTC 48.23+2.3%Feb 11 3:59 PM EST
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To: Joey Smith who wrote (48046)2/18/1998 2:42:00 PM
From: miraje   of 186894
 
Joey,

There is one tax ramification you should be aware of in regards to converting the warrants. You are correct that conversion does not create a realized capital gain/loss, however, the conversion resets your long term/short term basis to the date of conversion. If you plan on holding your converted shares for longer than 18 months, no problem. If your INTCW is currently long term and you convert and sell the commons within an 18 month time frame, you could get hit with a much higher tax bite outside an IRA. Under the latter scenario, selling your INTCW and buying the commons could make more sense taxwise. Hope this helps.

Regards, JB

PS: Anyone promoting a flat tax or national sales tax to get rid of the IRS monster, gets my vote!
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