JetBlue Latest and Greatest
10-28-2018, 01:05 PM
#7331
Gets Weekends Off
Joined APC: Dec 2005
Posts: 8,927
Now suppose month 1 stock was $100 but month 6 (today) it is $120. You still get it at the lower $100 , so $85 per stock for you.
Now you instant sell at $85, with stock today at $120.
What’s the burden? $15 at regular tax rate and $20 capital gains only? Or the full $35 profit at regular tax rate because you sold it at instant same day?
Now you instant sell at $85, with stock today at $120.
What’s the burden? $15 at regular tax rate and $20 capital gains only? Or the full $35 profit at regular tax rate because you sold it at instant same day?
10-28-2018, 05:27 PM
#7332
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,674
Can someone spell it out using a simple $100 example of one stock.
Say the price of stock was $100 and you get it at that discount of 15% so you got it at $85.
Instant same day, you put sell order through. Now you’ve “made” $15. What’s the tax burden now?
Just regular tax rate on the $15?
Fed, state, SS/med?
Say the price of stock was $100 and you get it at that discount of 15% so you got it at $85.
Instant same day, you put sell order through. Now you’ve “made” $15. What’s the tax burden now?
Just regular tax rate on the $15?
Fed, state, SS/med?
10-28-2018, 05:28 PM
#7333
SDQ Base Chief
Joined APC: Mar 2006
Position: 320 CA
Posts: 5,674
Now suppose month 1 stock was $100 but month 6 (today) it is $120. You still get it at the lower $100 , so $85 per stock for you.
Now you instant sell at $85, with stock today at $120.
What’s the burden? $15 at regular tax rate and $20 capital gains only? Or the full $35 profit at regular tax rate because you sold it at instant same day?
Now you instant sell at $85, with stock today at $120.
What’s the burden? $15 at regular tax rate and $20 capital gains only? Or the full $35 profit at regular tax rate because you sold it at instant same day?
10-28-2018, 06:31 PM
#7334
Gets Weekends Off
Joined APC: Feb 2007
Position: At JBLU
Posts: 337
I sell immediately, but have a friend that holds it for 2 years (I think....maybe just 1)
He always sells at the 2 year mark, so he avoids the capital gains.
He’s been doin it for a while, seems happy with his results.
I just don’t want to hold JBLU stock any longer than I have to.
He always sells at the 2 year mark, so he avoids the capital gains.
He’s been doin it for a while, seems happy with his results.
I just don’t want to hold JBLU stock any longer than I have to.
10-28-2018, 07:05 PM
#7335
Gets Weekends Off
Joined APC: Dec 2008
Position: Left,Right, Left, Right,Right,Left, Right, Left
Posts: 3,150
You guys make my brain hurt.
If you don’t understand where your money is going. Buy a person to explain it to you. It’s cheaper than learning. This really isn’t difficult but if you don’t know where your cash is where it’s going and what it’s doing. Do yourself a favor and buy some expertise. Stupidity is not only painful but it’s expensive.
If you don’t understand where your money is going. Buy a person to explain it to you. It’s cheaper than learning. This really isn’t difficult but if you don’t know where your cash is where it’s going and what it’s doing. Do yourself a favor and buy some expertise. Stupidity is not only painful but it’s expensive.
10-29-2018, 04:04 AM
#7336
Gets Weekends Off
Joined APC: Aug 2005
Posts: 324
The base contribution amount (including the 17.6% gain) is always taxed as ordinary income. The gains (if any) above that are what is taxed as long term if held greater than a year, or at the ordinary income tax rate if held less than a year. So yes, correct, sorry if I wasn’t clear in the previous post.
Waiting on those 18 months turns you into a speculator but you can take advantage of the delay. If the price has risen by the 18 month minus a day point, then wait a day or two to sell to get the lower tax rate. If it has dropped, sell a day or two early to take a larger tax loss that can offset other short term gains at the higher tax rate.
Better yet, just don't speculate, sell immediately, only pay taxes on the discount and pay no capital gains taxes at all.
10-29-2018, 09:59 AM
#7337
The REAL Bluedriver
Joined APC: Sep 2011
Position: Airbus Capt
Posts: 6,920
That's essentially correct except the long term capital gains rate doesn't kick in until 2 years from the START of the offering period, or a year from the date of purchase, whichever is later. For our purposes, that comes out to 18 months from the purchase date.
Waiting on those 18 months turns you into a speculator but you can take advantage of the delay. If the price has risen by the 18 month minus a day point, then wait a day or two to sell to get the lower tax rate. If it has dropped, sell a day or two early to take a larger tax loss that can offset other short term gains at the higher tax rate.
Better yet, just don't speculate, sell immediately, only pay taxes on the discount and pay no capital gains taxes at all.
Waiting on those 18 months turns you into a speculator but you can take advantage of the delay. If the price has risen by the 18 month minus a day point, then wait a day or two to sell to get the lower tax rate. If it has dropped, sell a day or two early to take a larger tax loss that can offset other short term gains at the higher tax rate.
Better yet, just don't speculate, sell immediately, only pay taxes on the discount and pay no capital gains taxes at all.
10-29-2018, 10:55 AM
#7340
The REAL Bluedriver
Joined APC: Sep 2011
Position: Airbus Capt
Posts: 6,920
I sell immediately, but have a friend that holds it for 2 years (I think....maybe just 1)
He always sells at the 2 year mark, so he avoids the capital gains.
He’s been doin it for a while, seems happy with his results.
I just don’t want to hold JBLU stock any longer than I have to.
He always sells at the 2 year mark, so he avoids the capital gains.
He’s been doin it for a while, seems happy with his results.
I just don’t want to hold JBLU stock any longer than I have to.
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