Maybe I'm a simpleton, but I thought if you sold at a profit and used the profit to buy up more stock before tax time, you did not have to pay taxes until you ultimately cashed out.Bocephus said:I bleed maroon said:
Does anyone have thoughts about Eli Lilly (LLY)?
I have held the stock since 2010, and have a healthy 1600% gain, but have become nervous the past year, and have regularly bought protective puts on LLY. My theory is/was that something will halt the continuous melt-up, such as new side effects may materialize with their wonder weight loss drug, or Biden's insulin regulations will reduce their profitability. Needless to say, if you have consulted a chart, this hedging idea has not gone well for me.
So, as my last three sets of puts will expire worthless in November, would anyone recommend re-upping on some more? They are not cheap to buy, but I do NOT want to take the tax gain on a sale or covered call exercise, as this position is in a taxable account.
Maybe I'm a simpleton, but I thought if you sold at a profit and used the profit to buy up more stock before tax time, you did not have to pay taxes until you ultimately cashed out. Paying capital gains taxes on a 1600% gain does not seem all that hurtful in the end anyways. I imagine a CPA would have some ideas on how to lessen the tax burden.
Nope - tax is due the year the gain is realized. I like your way better, though.
Paying capital gains taxes on a 1600% gain does not seem all that hurtful in the end anyways.
To be clear, I want to defer the gain until full retirement, when my income tax rate should be lower. I don't need the money for anything else at this point.
I imagine a CPA would have some ideas on how to lessen the tax burden.
The best way is to clean out long term capital losses to offset the gain, but I used that strategy last year, and the cupboard is bare, so to speak (a nice problem to have, I guess).
I'm mainly looking for informed opinions on LLY stock trajectory, but there are no bad questions or ideas!
