Re:U.S. Will Track Secret Buyers of Luxury Real Estate
by charlesdm on Sunday January 17, 2016 @08:15AM
(#10919365)
You borrow against your stock, of course, so you don't have to realise the capital gain yet get access to the cash. If you're worried about downside protection, you can always buy a put option for the stock you pledged at its current value.
Re:U.S. Will Track Secret Buyers of Luxury Real Estate
by sowbug on Sunday January 17, 2016 @10:47AM
(#10919765)
Many publicly traded companies prohibit their employees from buying puts or selling calls on their stock, as it misaligns incentives, similarly to how shorting the stock causes you to benefit from a decline in price.
On a macro level, the government penalizes selling of assets at 23.8% (current long-term capital gains + ACA surcharge) and on the other hand encourages borrowing by keeping the rates low and allowing the interest portion to be deducted as an investment expense, so what's a rational person to do?