vania-janet/multiturn-rag-retrieval-data huggingface dataset:
"You're right.  I did include ""is it reasonable"" in the title.  Therefore that brings in the acceptability of those taxes.  However I am making the case that I would like capital gains to be taxed most similarly to regular income (or at least in a parallel bracket), which is independent of the amount needed to be brought in.  I think parallel brackets would be the most productive since it would encourage people to both produce and invest, because you would get the lowest taxes by maximizing both."
"if you buy back the now ITM calls, then you will have a short term loss. That pair of transactions is independent, from a tax perspective, of your long position (which was being used as ""collateral"" in the very case that occurred). I can see your tax situation and can see the logic of taking a short term loss to balance a short term gain.  Referring to D Stanley's answer, #2 and #3 are not the same because you are paying intrinsic value in the options and the skew in #2, whereas #3 has no intrinsic value. Of course, because you can't know the future, the stock price could move higher or lower between #2 and #3. #1 presumes the stock continues to climb."
It was not 100% clear if you have held all of these stocks for over a year.  Therefore, depending on your income tax bracket, it might make sense to hold on to the stock until you have held the individual stock for a year to only be taxed at long-term capital gains rates.  Also, you need to take into account the Net Investment Income Tax(NIIT), if your current modified adjusted income is above the current threshold.  Beyond these, I would think that you would want to apply the same methodology that caused you to buy these in the first place, as it seems to be working well for you. 2 & 3. No.  You trigger a taxable event and therefore have to pay capital gains tax on any gains.  If you have a loss in the stock and repurchase the stock within 30 days, you don't get to recognize the loss and have to add the loss to your basis in the stock (Wash Sales Rules).
No, you can not cheat the IRS. This question is also based on the assumption that the stock will return to $1 which isn't always a safe assumption and that it will continue to cycle like that repeatedly which is also likely a false assumption.
"I'll try to answer using your original example.  First, let me restate your assumptions, slightly modified: The mutual fund has: Note that I say the ""mutual fund has"" those gains and losses. That's because they occur inside the mutual fund and not directly to you as a shareholder. I use ""realized"" gains and losses because the only gains and losses handled this way are those causes by actual asset (stock) sales within the fund (as directed by fund management).  Changes in the value of fund holdings that are not sold are not included in this. As a holder of the fund, you learn the values of X, Y, and Z after the end of the year when the fund management reports the values.  For gains, you will also typically see the values reported on your 1099-DIV under ""capital gains distributions"".  For example, your 1099-DIV for year 3 will have the value Z for capital gains (besides reporting any ordinary dividends in another box).   Your year 1 1099 will have $0 ""capital gains distributions"" shown because of the rule you highlighted in bold: net realized losses are not distributed.  This capital loss however can later be used to the mutual fund holder's tax advantage.  The fund's internal accounting carries forward the loss, and uses it to offset later realized gains.  Thus your year 2 1099 will have a capital gain distribution of (Y-X), not Y, thus recognizing the loss which occurred. Thus the loss is taken into account.  Note that for capital gains you, the holder, pay no tax in year 1, pay tax in year 2 on Y-X, and pay tax in year 3 on Z. All the above is the way it works whether or not you sell the shares immediately after the end of year 3 or you hold the shares for many more years.  Whenever you do sell the shares, you will have a gain or loss, but that is different from the fund's realized losses we have been talking about (X, Y, and Z)."
Don't let tax considerations be the main driver. That's generally a bad idea. You should keep tax in mind when making the decision, but don't let it be the main reason for an action. selling the higher priced shares (possibly at a loss even) - I think   it's ok to do that, and it doesn't necessarily have to be FIFO? It is OK to do that, but consider also the term. Long term gain has much lower taxes than short term gain, and short term loss will be offsetting long term gain - means you can lose some of the potential tax benefit. any potential writeoffs related to buying a home that can offset capital gains? No, and anyway if you're buying a personal residence (a home for yourself) - there's nothing to write off (except for the mortgage interest and property taxes of course). selling other investments for a capital loss to offset this sale? Again - why sell at a loss? anything related to retirement accounts? e.g. I think I recall being able to take a loan from your retirement account in order to buy a home You can take a loan, and you can also withdraw up to 10K without a penalty (if conditions are met). Bottom line - be prepared to pay the tax on the gains, and check how much it is going to be roughly. You can apply previous year refund to the next year to mitigate the shock, you can put some money aside, and you can raise your salary withholding to make sure you're not hit with a high bill and penalties next April after you do that. As long as you keep in mind the tax bill and put aside an amount to pay it - you'll be fine. I see no reason to sell at loss or pay extra interest to someone just to reduce the nominal amount of the tax. If you're selling at loss - you're losing money. If you're selling at gain and paying tax - you're earning money, even if the earnings are reduced by the tax.
**Dividends paid out of the exempt surplus of an FA can be received free of additional taxes in Canada**, since the profits out of which they are paid are considered to have borne a rate of tax in the treaty country comparable to that of Canada. [Source](http://www.nrcan.gc.ca/mining-materials/taxation/8880) see the section on Subsidiary Income. This is the reason BK is moving to Canada. [Also here is a very interesting deck on corporate tax minimization in latin america by the Canadian mining industry.](http://miningtaxcanada.com/wp-content/uploads/2010/05/TOR01-5160395-v1-RMLF_Cartagena_Slides.pdf)
"Your assertion that you will not be selling anything is at odds with the idea that you will be doing tax loss harvesting.  Tax loss harvesting always involves some selling (you sell stocks that have fallen in price and lock in the capital losses, which gives you a break on your taxes).  If you absolutely prohibit your advisor from selling, then you will not be able to do tax loss harvesting (in that case, why are you using an advisor at all?). Tax loss harvesting has nothing to do with your horizon nor the active/passive difference, really. As a practical matter, a good tax loss harvesting plan involves mechanically selling losers and immediately putting the money in another stock with more-or-less similar risk so your portfolio doesn't change much.  In this way you get a stable portfolio that performs just like a static portfolio but gives you a tax benefit each year.  The IRS officially prohibits this practice via the ""wash sale rule"" that says you can't buy a substantially identical asset within a short period of time.  However, though two stocks have similar risk, they are not generally substantially similar in a legal sense, so the IRS can't really beat you in court and they don't try.  Basically you can't just buy the same stock again. The roboadvisor is advertising that they will perform this service, keeping your portfolio pretty much static in terms of risk, in such a way that your tax benefit is maximized and you don't run afoul of the IRS."
As far as I read in many articles, all earnings (capital gains and dividends) from Canadian stocks will be always tax-free. Right? There's no withholding tax, ie. a $100 dividend means you get $100. There's no withholding for capital gains in shares for anybody. You will still have to pay taxes on the amounts, but that's only due at tax time and it could be very minor (or even a refund) for eligible Canadian dividends. That's because the company has already paid tax on those dividends. In contrast, holding U.S. or any foreign stock that yields dividends in a TFSA will pay 15% withholding tax and it is not recoverable. Correct, but the 15% is a special rate for regular shares and you need to fill out a W8-BEN. Your broker will probably make sure you have every few years. But if you hold the same stock in a non-registered account, this 15% withholding tax can be used as a foreign tax credit? Is this true or not or what are the considerations? That's true but reduces your Canadian tax payable, it's not refundable, so you have to have some tax to subtract it from. Another consideration is foreign dividends are included 100% in income no mater what the character is. That means you pay tax at your highest rate always if not held in a tax sheltered account. Canadian dividends that are in a non-registered account will pay taxes, I presume and I don't know how much, but the amount can be used also as a tax credit or are unrecoverable? What happens in order to take into account taxes paid by the company is, I read also that if you don't want to pay withholding taxes from foreign > dividends you can hold your stock in a RRSP or RRIF? You don't have any withholding taxes from US entities to what they consider Canadian retirement accounts. So TFSAs and RESPs aren't covered. Note that it has to be a US fund like SPY or VTI that trades in the US, and the account has to be RRSP/RRIF.
&gt;Why not give extra tax breaks for the sale of stock purchased during a public offering (since that goes to helping the company) but not for secondhand (less necessary) trading  Because secondary trading determines how easy it is for companies to raise additional money and it also allows the company to manipulate private vs publicly held stakes in their company.  &gt;Should we give big tax breaks to people who lend businesses money?  There's a difference between lending money and investing in a corporation. Furthermore the income tax code when it comes to lending money via bonds is a complete mess. Corporate bond coupons are taxed like regular income (although the principal return is, of course, tax free). Federal and munis are taxed differently. There is also the advantage that you do get a tax break in the event of default, so any additional risk you take on has some marginal tax benefits.
"There are several such ""lists."" The one that is maintained by the company is called the shareholder registry. That is a list that the company has given to it by the brokerage firms. It is a start, but not a full list, because many individual shareholders hold their stock with say Merrill Lynch, in ""street name"" or anonymously. A more useful list is the one of institutional ownership maintained by the SEC. Basically, ""large"" holders (of more than 5 percent of the stock) have to register their holdings with the SEC. More to the point, large holders of stocks, the Vanguards, Fidelitys, etc. over a certain size, have to file ALL their holdings of stock with the SEC. These are the people you want to contact if you want to start a proxy fight. The most comprehensive list is held by the Depositary Trust Company. People try to get that list only in rare instances."
The answer to your question as asked is no.  Call options, even those issued by the company, cannot create new shares unless they are employee stock options. Company-issued warrants, on the other hand, can create new shares.
All sorts of conditions, yes. Most commonly is a limitation on the exercise date.  The two more common would be American which is exercisable any time, and European which are only exercisable on their expiry date. Sometimes they may be linked to the original asset, and might only be convertible to stock if that original asset is given/sold back to the company.  (Effectively perhaps making the bond convertible to stock). Lots more details on the Pedia, but in short, basically you need to read the warrant contract individually, as each will differ.
You have not lost value. It is just that the shares you owned, are now not tradable on US stock exchanges. You still have the value of your shares protected. In cases like de-listing of a stock, typically a trust (may be managed by a bank) is setup to help customers liquidate their stocks. You should try to search the relevant SEC filings for de-listing of this stock to get more details on whom to contact.
All securities must be registered with the SEC. Securities are defined as (1) The term “security” means any note, stock, treasury stock,   security future, security-based swap, bond, debenture, evidence of   indebtedness, certificate of interest or participation in any   profit-sharing agreement, collateral-trust certificate,   preorganization certificate or subscription, transferable share,   investment contract, voting-trust certificate, certificate of deposit   for a security, fractional undivided interest in oil, gas, or other   mineral rights, any put, call, straddle, option, or privilege on any   security, certificate of deposit, or group or index of securities   (including any interest therein or based on the value thereof), or any   put, call, straddle, option, or privilege entered into on a national   securities exchange relating to foreign currency, or, in general, any   interest or instrument commonly known as a “security”, or any   certificate of interest or participation in, temporary or interim   certificate for, receipt for, guarantee of, or warrant or right to   subscribe to or purchase, any of the foregoing. thus currencies are not defined as securities. While OTC transactions of securities is not outright forbidden, there are numerous regulations issued by the SEC as a result of the 1943 Exchange Act and others that make this difficult and/or costly. Many other securities are exempted from registration thus trade in a way that could be called OTC. Different countries have variances upon US law but are very similar. Any security could be traded OTC, but law prohibits it expressly or in such a way to make it relatively expensive; further, stock options are so tightly regulated that expiration dates, expiration intervals, strike intervals, and minimum ticks are all set by the authorities.
"They pretty much already have what you are looking for.  They are called Unit Investment Trusts.  The key behind these is (a)  the trust starts out with a fixed pool of securities.  It is completely unmanaged and there is no buying or selling of the securities, (b) they terminate after a fixed period of time, at which time all assets are distributed among the owners. According to Investment Company Institute, ""securities in a UIT are   professionally selected to meet a stated investment objective,  such   as growth,  income, or capital appreciation."" UITs sell a fixed    number of units at one-time  public offering. Securities in a UIT do    not trade actively, rather, UITs use a  strategy known as    buy-and-hold. The UIT purchases a certain amount of  securities and    holds them until its termination date. Holdings rarely change   throughout the life of the trust so unit holders know exactly what    they're  investing in, and the trust lists all securities in its    prospectus. Unit trusts  normally sell redeemable units - this    obligates the trust to re-purchase  investor's units at their net    asset value at the investors request."
You will not get a vote on any issues of the underlying stock.   The mutual fund owner/manager will do the voting. In 2004, the Securities and Exchange Commission (SEC) required that   fund companies disclose proxy votes, voting guidelines and conflicts   of interest in the voting process. All funds must make these   disclosures to the SEC through an N-PX filing, which must either be   available to shareholders on the fund company's websites or upon   request by telephone. You can also find your fund's N-PX filing on the   SEC website.  -- http://www.investopedia.com/articles/mutualfund/08/acting-in-interest.asp
"It becomes ""yours"" when it leaves the trust. Until that point the Trust owns the shares attributable to your account. There are some different arrangements out there, in the cases of some of the smaller 401(k) providers, where the assets are held in annuity products, or even individual annuities in the case of 403(b) plans.  To further answer the question, the trust and  trustee own and hold the account before you take a distribution. In a lot of cases the 401(k) recordkeeper has a trust company that they use to serve as the custodian (person or entity who retains the assets). In some plans you have an individual Trustee or a Corporate Trustee. Those setups are not good for that person or company because they are ultimately responsible for backing the assets in the plan, and as you can imagine, leaving that responsibility to one person is not safe for that individual.  Hope that helps, glad to answer any other questions you have!"
"A little terminology: Grant: you get a ""gift"" with strings attached. ""Grant"" refers to the plan (legal contract) under which you get the stock options. Vesting: these are the strings attached to the grant. As long as you're employed by the company, your options will vest every quarter, proportionally. You'll become an owner of 4687 or 4688 options every quarter. Each such vest event means you'd be getting an opportunity to buy the corresponding amount of stocks at the strike price (and not the current market price which may be higher). Buying is called exercising. Exercising a nonqualified option is a taxable event, and you'll be taxed on the value of the ""gift"" you got. The value is determined by the difference between the strike price (the price at which you have the option to buy the stock) and the actual fair market value of the stock at the time of vest (based on valuations). Options that are vested are yours (depending on the grant contract, read it carefully, leaving the company may lead to forfeiture). Options that are not vested will disappear once you leave the company. Exercised options become stocks, and are yours. Qualified vs Nonqualifed - refers to the tax treatment. Nonqualified options don't have any special treatment, qualified do. 3.02M stocks issued refers to the value of the options. Consider the total valuation of the company being $302M. With $302M value and 3.02M stocks issued, each stock is worth ~$100. Now, in a year, a new investor comes in, and another 3.02M stocks are issued (if, for example, the new investor wants a 50% stake). In this case, there will be 6.04M stocks issued, for 302M value - each stock is worth $50 now. That is called dilution. Your grant is in nominal options, so in case of dilution, the value of your options will go down. Additional points: If the company is not yet public, selling the stocks may be difficult, and you may own pieces of paper that no-one else wants to buy.
"I did a little research and found the eligible investments for TFSAs. In this document under heading ""Shares of private and other corporations"", sub heading ""Shares of small business corporations"" there is clause about owning less than 10% share and less than $25000 total value of the corporation. Generally, a connected shareholder of a corporation (as  defined in subsection 4901(2) of > the Regulations) at any time  is a person who   owns, directly or indirectly, at that time,  10% or more of the shares   of any class of shares of the  corporation or of any other corporation   related to the  corporation.    However, where   • such a person is   dealing at arm's length with the  corporation or any other related   corporation; and   • the aggregate cost amount of all shares of the   corporation  or any other related corporation the person owns, or is    deemed to own, is less than $25,000 that person will not be a   connected shareholder of the  corporation. For purposes of the 10%   and $25,000 tests, the rules in the  definition of ìspecified   shareholderî in subsection 248(1)  apply with the result that certain   shares will be deemed to be  owned by the shareholder. For example, by   virtue of  paragraphs (a) and (b), respectively, of that definition,   an  annuitant, a beneficiary or a subscriber under a plan trust is    deemed to own the shares owned by a person with whom the  annuitant,   beneficiary or subscriber is not dealing at armís  length, as well as   the shares owned by the plan trust.  In addition, any share that  • the annuitant, beneficiary, or subscriber under a plan trust;  or • a person not dealing at arm's length with any of the above  has a right to acquire is also included in the calculation of the  percentage and   cost amount of the shares held for purposes  of the 10% and $25,000   tests pursuant to subsection  4901(2.2) of the Regulations."
Yes. There are levels of option trading permission. For example, I've never set myself up for naked put writing.  But, if you already have the call spread, buying back the shorted call will leave you with a long call. This wouldn't be an issue. As long as you have the cash/margin to buy back that higher strike call.
Yes  You could write a covered call and the stock gets called away at the price + premium.  You could convince someone to buy it regardless of the market price.
In most mutual funds you delegate voting rights to the investment manager.  The securities are typically held by a third party bank as part of the requirements for Securities Investor Protection Corporation (SIPC).  You own equity in that mutual fund, which owns the shares (but are held by a third party); you don't have direct ownership as in most cases that would result in you owning fractions of shares.
I found the following on a stock to mutual conversion for insurance firms for Ohio. Pulling from that link,  Any domestic stock life insurance corporation, incorporated under a general law, may become a mutual life insurance corporation, and to that end may carry out a plan for the acquisition of shares of its capital stock, provided such plan: (A) Has been adopted by a vote of a majority of the directors of such corporation; (B) Has been approved by a vote of stockholders representing a majority of the capital stock then outstanding at a meeting of stockholders called for the purpose; (C) Has been approved by a majority of the policyholders voting at a meeting of policyholders called for the purpose, each of whom is insured in a sum of at least one thousand dollars and whose insurance shall then be in force and shall have been in force for at least one year prior to such meeting.  and Any stockholder who has assented to the plan or who has been concluded by the vote of the assenting stockholders, and any stockholder who has objected and made demand in writing for the fair cash value of his shares subsequent to which an agreement has been reached fixing such fair cash value, but who fails to surrender his certificates for cancellation upon payment of the amount to which he is entitled, may be ordered to do so by a decree of the court of common pleas for the county in which the principal office of such corporation is located after notice and hearing in an action instituted by the corporation for that purpose, and such decree may provide that, upon the failure of the stockholder to surrender such certificates for cancellation, the decree shall stand in lieu of such surrender and cancellation.  Since they successfully became a mutual insurance company, I would guess that those stocks were acquired back by the company, and are leftover from the conversion. They would not represent an ownership in the company, but might have value to a collector.