Jean,
Why don't you call VLNC and ask them for a loan, and maybe you can hit 100,000 shares instead of just 10,000. (And maybe they will forgive the debt if the company goes belly up.)
Hey guys, lets just go thru LD tax return if the loan is forgiven because the company tanked. There is the forgiveness of debt, that is a capital gain, and then there is a capital loss for whatever his basis is in the 1,000,000 shares. So, I don't think he is going to pay much in the way of taxes if the debt is forgiven because the company tanked. By the way, the reason as discussed on this thread that LD excercised the option was so that he would not have to pay tax if the stock increases in value. Therefore, the reasoning goes, he saves tax dollars if the stock goes up, gains the increase in value if the stock goes up, but has very little down side if the company goes bye bye. Last but not least, his sunk cost in the 1,000,000 shares for whatever his basis is, is old history and has nothing to do with this current transaction. |
