<malibu.ron[at]verizon.net> wrote:

- quote -

If they're not allowed to short, you're stuck.

- quote -

Get a better broker. If there's enough money involved (you
don't say how many shares), there are things they can do
(e.g. a total return swap) to lock in your price.

However, if you aren't careful, you can lose the long-term
capital gains treatment; for instance, if the stock drops
back, you have a short-term profit on the contract and break
even on the stock.

Seth

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malibu.ron[at]verizon.net wrote:

- quote -

The only thing I can think of is doing an installment sale.
The problem is that it's just not realistic for anyone
actually to pay that way, because in the end you may end up
not getting paid.

If you're a real good customer perhaps your broker will do
it with you. They buy it all now at $1.90 and sell it for
the same price, so they have no taxable income. But they
pay you off over several years, and you recognize income as
it's received.

Stu

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >

Here is a real challenge. I purchased shares of a penny
stock that increased in value from $.51 to $1.90 in two
years. It is a bulletin board stock, not listed on any
pinksheet or other exchange. I would like to lock in the
profit and sell shares over several years when I want cash.
Selling everything at once I will be subject to the
favorable long term capital gains taxes but I will also
incur the wrath of the ATM. By selling off over a few years
I can avold the ATM. My broker informs me they cannot do a
"short against the box" or write a "put" due to the low
price. Does anyone have a solution. I am not complaining
about my windfall. just trying to optimize the situation.

<< ================================================== ===== > << The foregoing is intended for educational purposes only > << and does NOT constitute legal OR professional advice. > << > << The Charter and the Guidelines for submitting > << messages to this newsgroup are at www.asktax.org. > << Copyright (2006) - All rights reserved. > << ================================================== ===== >