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Technology Stocks : Intel Corporation (INTC) -- Ignore unavailable to you. Want to Upgrade?

To: Sonny McWilliams who wrote (49103)	3/1/1998 7:43:00 PM
From: Barry Grossman	Read Replies (1) \| Respond to of 186894

Sonny, <<I am not quite sure what you mean by this holding period being set back.>> I believe this is the story. For tax purposes, when the warrants are converted, the holding period from which to start counting in order to figure long term or short term capital gain (when sold) is reset to zero. So, if you have a long term capital gain in the warrants and if you convert them to stock, and if you do not then hold the stock at least minimum time for qualifying for a capital gain (18 months now, isn't it?), then the capital gain would be taxed as a short term gain. If you sell the warrants instead of converting them, the tax consequences are immediate, even if you buy the stock with the proceeds. If you convert, there is no capital gain until the stock is sold. Barry