Dave
Member
"It's tough to make predictions, especially about the future." Yogi Berra
Posts: 4,090
|
Post by Dave on Dec 14, 2020 3:00:54 GMT -8
|
|
Dave
Member
"It's tough to make predictions, especially about the future." Yogi Berra
Posts: 4,090
|
Post by Dave on Dec 14, 2020 3:08:13 GMT -8
|
|
Dave
Member
"It's tough to make predictions, especially about the future." Yogi Berra
Posts: 4,090
|
Post by Dave on Dec 14, 2020 3:17:30 GMT -8
|
|
Dave
Member
"It's tough to make predictions, especially about the future." Yogi Berra
Posts: 4,090
|
Post by Dave on Dec 14, 2020 3:19:41 GMT -8
|
|
Dave
Member
"It's tough to make predictions, especially about the future." Yogi Berra
Posts: 4,090
|
Post by Dave on Dec 14, 2020 3:27:13 GMT -8
|
|
Dave
Member
"It's tough to make predictions, especially about the future." Yogi Berra
Posts: 4,090
|
Post by Dave on Dec 14, 2020 3:44:03 GMT -8
|
|
|
Post by podboy on Dec 14, 2020 8:30:53 GMT -8
If anyone can help me out with long term capital gains tax it would be appreciated.
On Jan. 1st 2020 my LEAP position was worth $220K; today it is worth $1M. My LEAP position which I've held for nearly 2 years is set to expire 1.15.21. I plan on rolling all of the LEAPS to JAN23 LEAPS but here is my question. Should I roll half now to realize the gain on this years tax filing and roll the other half in January so that I can avoid the higher tax bracket? My wife and I make a combined yearly income of $100K.
This is a good problem to have, and thank you AAPL. But the thought of coming up with 20% of an almost $800K ($160K) means I have to liquidate a part of my LEAPS to cover it. We don't have $160K in our coffers.
Thanks for anyone that can offer some recommendations. I never thought I'd owe that capital gain tax in my life so I'm grateful for everything I have to pay.
|
|
JDSoCal
Member
Aspiring oligarch
Posts: 4,182
|
Post by JDSoCal on Dec 14, 2020 10:09:00 GMT -8
I predicted this when Apple first got into content creation; it won't be edgy. You'd never see a Sopranos or Breaking Bad on Apple TV. Having listened to most of that Outside interview, I don't know why Tim agreed to it, and I'll bet whoever set it up is in the doghouse. The interviewer was the last guy you'd want Tim talking to. The Outside guy was essentially saying that people should turn off their iPhones more and iPhones should last 15 years because Gaia wants that. Yeah that would be great for earnings. A climate religion nutter without the foggiest notion of how a publicly traded company works or is judged by investors.
I was also concerned about Tim's reiteration of Apple's censorship policies. The guy who thinks privacy is a fundamental right doesn't seem to think free speech is. Honestly, if my cost basis wasn't what it is, this is not a company culture that I would want to invest in. Steve wouldn't be rambling about "carbon neutral" and censorship nonsense.
|
|
|
Post by duckpins on Dec 14, 2020 11:34:14 GMT -8
Apple creating "content" instead of buying or partnering with Netflix, etc.. and trying to create a "driverless car" makes one wonder if corporate tax rates were on gross income not net if they would have done the same. I find Apple TV annoying. Every time I try to log in I have to go through the two device protocol. Seems like a waste of time.
|
|
mark
fire starter
Posts: 1,552
|
Post by mark on Dec 14, 2020 20:10:59 GMT -8
Apple creating "content" instead of buying or partnering with Netflix, etc.. and trying to create a "driverless car" makes one wonder if corporate tax rates were on gross income not net if they would have done the same. I find Apple TV annoying. Every time I try to log in I have to go through the two device protocol. Seems like a waste of time. I don't understand this.I have an Apple TV, and I've only logged in 2 or 3 times to it, once on the first day I connected it (quite a few years ago). Then once after a big software upgrade and I had to reset something due to cable provider login. And I think perhaps once more, maybe a year or two ago. How many times do you have to login to your Apple TV?!?! [NOTE: I just checked and I purchased my Apple TV in late 2016, so it's more than 4 years now.]
|
|
|
Post by deasys on Dec 14, 2020 23:34:34 GMT -8
Apple creating "content" instead of buying or partnering with Netflix, etc.. and trying to create a "driverless car" makes one wonder if corporate tax rates were on gross income not net if they would have done the same. I find Apple TV annoying. Every time I try to log in I have to go through the two device protocol. Not normal. It may be worthwhile talking to Apple about this.
|
|
JDSoCal
Member
Aspiring oligarch
Posts: 4,182
|
Post by JDSoCal on Dec 15, 2020 8:31:31 GMT -8
Apple creating "content" instead of buying or partnering with Netflix, etc.. and trying to create a "driverless car" makes one wonder if corporate tax rates were on gross income not net if they would have done the same. I find Apple TV annoying. Every time I try to log in I have to go through the two device protocol. Seems like a waste of time. I can't think of a dumber idea coming from a purported investor. You even admit yourself that it would leave Apple with less revenue to innovate. I mean I am really racking my brain here to come up with something dumber to propose, but you really have me checkmated here. CANCER.
|
|
4aapl
Moderator
Posts: 3,622
|
Post by 4aapl on Dec 15, 2020 11:23:25 GMT -8
If anyone can help me out with long term capital gains tax it would be appreciated. On Jan. 1st 2020 my LEAP position was worth $220K; today it is worth $1M. My LEAP position which I've held for nearly 2 years is set to expire 1.15.21. I plan on rolling all of the LEAPS to JAN23 LEAPS but here is my question. Should I roll half now to realize the gain on this years tax filing and roll the other half in January so that I can avoid the higher tax bracket? My wife and I make a combined yearly income of $100K. This is a good problem to have, and thank you AAPL. But the thought of coming up with 20% of an almost $800K ($160K) means I have to liquidate a part of my LEAPS to cover it. We don't have $160K in our coffers. Thanks for anyone that can offer some recommendations. I never thought I'd owe that capital gain tax in my life so I'm grateful for everything I have to pay. Congrats! That's a great problem to have. Personally, I used to use options, at times very bullishly, and now mostly don't. The up times were great, but the date stamp connected with the options made it so you could hit problems, having to sell it when the timing was bad. But with so many options for using options to invest, maybe you have something that works much better. I was probably too risky, and thus didn't have much to roll forward even if it was an option. (overall I made a lot with options, but sometimes I also lost a fair amount) That said, if AAPL has been kind to you, one choice is to roll some of it into the stock itself, or even a wider ETF. I've done that with a portion, say 10-20%, of our AAPL holdings. It's boring. But, if something very very bad were to happen to Apple, it would be a nice safety net. When just out of college my 401k was my anti-dogfood retirement plan, letting me be more risky with my other investments. Now with a family, houses, and other responsibilities, this is the boring portion of my investments that hit a bit more on the responsible side. I suggest setting some aside, though the percent is tailorable to your feelings on the matter. As for taxes, yes, split them up. The gains you are talking about, nearly $800k, split evenly and added to your standard income, put you right about the mark of cap gains switching from 15% to 20%. The extra 3.8% investment income tax nests in there too, making it slightly more complex. But roughly speaking, by splitting it up you'd be paying around 17% on that second half ($~400k), instead of 23.8%. While that is "only" 6.8%, that's an additional 40% in taxes. In actual dollars, that's an extra $27.2k on $400k. Personally, I would split it up. The other side of the coin is the unknowns. If AAPL continues going up, you'd be missing out on gains. This is true even if rolling it forward and only taking out the money to pay taxes, but much less so than just sitting on the sidelines. Another negative or unknown is if tax rates will change, likely going up. Another is if you end up having other gains next year, then trying to split it up might not really be splitting it up. And one more is that if you split it up, you'll still have to pay taxes on the 2021 gains early, during the quarter. The safe harbor rules which make it so you don't have a fee if not paying things on time generally help you in times of a big change, whether that's a bump in income (ie selling a house), or things like marriage. This is just on the late fee so it isn't really a big deal (ie you should go ahead and send the money to the IRS when it should be paid), but I wanted to mention it. All that together, personally I would split it up. I'd split it 50/50, but you can use any ratio you want. Splitting it also might help with rolling into your next position, though if both are similar bullish positions the exact stock price might matter very little, whereas the current volatility might matter a lot more on a position 2.1 years out as compared to the position only .1 years out. It's your call. I'm not a tax professional, but have had to make similar choices over the year. Taxes remind you that you made a profit. But don't let taxes, or the fear thereof, cause you to make bad investment decisions. Good luck. And congrats on the great gains!
|
|
|
Post by podboy on Dec 15, 2020 12:58:29 GMT -8
Thank you so much for the replay 4aapl! I'll split them up as you said.
|
|
SomeJuan
Member
Taking a nap…
Posts: 321
|
Post by SomeJuan on Dec 15, 2020 13:45:34 GMT -8
Love these 6 figure days
|
|
4aapl
Moderator
Posts: 3,622
|
Post by 4aapl on Dec 15, 2020 15:03:04 GMT -8
|
|